May 2, 2025
Providers | Tea Leaves

Despite a recent Supreme Court ruling against hospitals in a case concerning Medicare’s Disproportionate Share Hospital (DSH) payments, hospitals plan to continue using the courts to challenge underpayments for treating low-income patients. The ruling limited how CMS calculates DSH payments, excluding some patients from the formula, but left room for future legal arguments. Hospitals are expected to pursue lawsuits, focusing on different aspects of the DSH program and potential policy changes that could affect payment calculations. Legal experts anticipate ongoing litigation, as hospitals seek to recoup billions of dollars in underpayments. (Article here)