Disproportionate Share Reimbursements (DSH) can be defined as the payments made by the government to healthcare providers to compensate for the higher costs they incur for serving a disproportionate number of uninsured and low-income patients. The DSH program is primarily intended to support hospitals and healthcare facilities that serve a large volume of medically underserved populations.
These reimbursements are typically made under the provisions of government-sponsored healthcare programs such as Medicaid. The DSH payments are designed to help mitigate the financial burden that hospitals face when delivering healthcare services to individuals who cannot afford to pay for care or lack adequate health insurance coverage. This financial support aims to ensure that healthcare providers can continue to offer essential services to underserved populations and maintain their financial stability.
The amount of DSH reimbursements allocated to healthcare facilities is determined based on several factors, including the number of uninsured and Medicaid-eligible patients they serve, as well as the costs they incur while providing care. The payments can vary depending on the specific guidelines and formulas set by federal and state authorities.
In summary, disproportionate share reimbursements refer to the financial support provided by the government to healthcare providers who serve a high proportion of uninsured and low-income patients. These payments help compensate for the additional costs incurred by hospitals while delivering care to medically underserved populations.