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Disproportionate Share Hospitals

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Delayed but deeper cuts for safety-net hospitals


For the third time in three years, federal cuts at safety-net hospitals have been delayed but the amount of  future cuts has been deepened.

An article on Governing Magazine’s Web site reports:

“America’s Essential Hospitals, a trade group for public hospitals, acknowledged there’s no returning to the level of DSH {Disproportionate Share Hospitals} spending before the ACA, but the stall in Medicaid expansion has certainly helped make their case that hospitals caring for the most vulnerable can’t sustain cuts. They also argue, however, that there’s evidence the ACA’s coverage expansions might not be enough, and the cuts go too deep. A study last year in the journal Health Affairs examined California, an enthusiastic supporter of the ACA, and found public hospitals there will have unmet DSH costs of more than $1 billion even by 2019.”

Such developments make adequate funding for such institutions as Federally Qualified Health Centers all the more important.

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