CHA News Article

DHCS to Reverse Disproportionate Share Hospital Reductions

On Feb. 9, the House of Representatives passed a bill delaying the Medicaid disproportionate share hospital (DSH) payment reduction until Oct. 1, 2020. Previously, the Department of Health Care Services (DHCS) had implemented the DSH reductions on Oct. 1, 2017, to comply with current law.

As a result of the delay, DHCS will now reverse the reductions that have taken place since Oct. 1, 2017, and has updated the program payments to add the previous reductions into the next payment, according to hospital group, as follows:

  • Private hospitals will see the increase in their December-January DSH replacement payment, scheduled for March 1.
  • Non-designated public hospitals will see the increase during the February-March 2018 DSH payment, scheduled for April 26.
  • University of California hospitals will see the increase in the round 3 DSH payments, scheduled for April 5 for certified public expenditures, and April 19 for intergovernmental transfers.
  • Global Payment Program hospitals will see the increase in their prior year 3, quarter 3 payments, scheduled for April 15.

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