The disproportionate-share hospital (DSH) supplemental payment program is designed to provide additional funding to hospitals that serve a disproportionate number of Medi-Cal and low-income/charity patients. This federally mandated program compensates DSH providers for their unrecovered costs of caring for Medicaid and other indigent patients. In California, the DSH program is administered by the Department of Health Care Services (DHCS), which annually determines eligibility. DSH payments to hospitals are determined by many variables.