Assessing and Responding to Medicaid DSH Reductions Mandated by the Affordable Care Act

The Affordable Care Act reduced federal Medicaid Disproportionate Share (DSH) funding by $17.1 billion between 2014 and 2020.  In a multi-stage project, we assessed the impact of those reductions on members of the America’s Essential Hospitals. First, we developed several methodologies for allocating these DSH reductions to different states, and performed state-level and hospital-level impact analyses using the state Medicaid DSH Audit data.  The results of the first stage were used by the client to advocate policy with the Centers for Medicare & Medicaid Services (CMS). In the FY 2014 IPPS Proposed Rule, CMS outlined a methodology that incorporated elements of our proposal.  After the rule’s release, we developed an interactive model that allowed users to understand how modifications to CMS’s methodology affected DSH support for states and hospitals, and conducted impact.

Services : Healthcare Reform Modeling Expertise: ,