Statement on Medicaid DSH Final Rule

Tom Nickels
AHA Executive Vice President of
Government Relations and Public Policy

The AHA is deeply disappointed in CMS’s action to finalize its rule regarding how third-party payments are treated when calculating the hospital-specific limitation on Medicaid disproportionate share hospital payments. It is clear the agency issued the rule in response to a recent unfavorable federal district court ruling in New Hampshire. Of particular concern is the decision by CMS to ignore requests to apply this change in policy in a prospective manner to give states and hospitals sufficient time to make needed adjustments to ensure compliance. We view this action as a good example of the need for significant regulatory reform and urge CMS to reconsider the rule.

About the AHA

The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which include nearly 5,000 hospitals, health care systems, networks, other providers of care and 43,000 individual members. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at www.aha.org.