OIG attention on DSH payment program escalates

The OIG has focused its attention on the Medicaid Disproportionate Share Hospital (DSH) Payment Program in its annual Work Plan for the past several years. This year is no different. Prompted by rapidly growing state DSH expenditures, the OIG highlighted several areas it is focused on this year.

The DSH requirement mandates additional funds from state Medicaid programs for hospitals that serve a disproportionate number of low-income patients—known as a DSH payment adjustment—in order to supplement their revenue stream.

CMS gives each state significant leeway in both defining DSH hospitals and its methods of DSH payment.