DISPROPORTIONATE SHARE HOSPITAL (DSH) PAYMENTS
What are DSH Payments?
Many rural and safety net hospitals provide care for a large number of uninsured and underinsured patients and receive funding to help offset the uncompensated costs of care. These funds are called Disproportionate Share Hospital (DSH) payments.
Why Do They Matter?
DSH funding is critical for hospitals in rural and low-income areas to maintain the level of service they provide to their communities.
DSH hospitals have a low number of patients with private insurance, so they cannot shift these losses to insurance providers.
Without DSH funding, these hospitals would be forced to reduce services, lay off staff, or close entirely—all devastating options for the communities they operate in.
DSH is a Medicaid program. The federal Centers for Medicare and Medicaid Service (CMS) provides this funding and states provide matching funds.
In New York, hospitals rely on $3.9 billion in DSH payments annually, more than any other state, according to KFF analysis.
Threats To DSH Funding
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2017
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2021
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2024

