Investigates the impact of possible changes to the
Medicare disproportionate share (DSH) payment policy,
designed to incorporate information on the hospital's
uncompensated care burden as well as to improve the
payment formulae. DSH payments were computed for
individual study hospitals under six alternative models,
and compared to the payments now made under current law.
For each alternative, the authors examined the overall
financial impact by type of hospital and the
characteristics of hospitals that would experience either
large payment increases or decreases relative to the
current system. These analyses are intended to help
policymakers evaluate the likely impact of revising the
DSH payment methodology.