Hospitals brace for DSH payment cuts
The first set of $43 billion in cuts to Medicaid Disproportionate Share Hospital (DSH) payments will kick in on Oct. 1 and safety-net hospitals have little hope federal action will delay the reductions yet again.
Originally set to begin in fiscal year (FY) 2014, the cuts would now run from FY2018 to FY2025. The first year would see a $2 billion reduction, with the cuts increasing by $1 billion each year before leveling off at an $8 billion reduction in both 2024 and 2025. The American Hospital Association and others have called for a further delay, but as STAT News reports, hospitals now expect they’ll be implemented as lawmakers focus on another ACA repeal effort.
“We don’t sleep well night,” said Michael Waldrum, MD, CEO of Vidant Health in eastern North Carolina. “We are in the business of taking care of people. But it doesn’t help us run health care companies. It definitely leads to stress.”
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.