Tag Archives: Disproportionate Share Hospital

Hospitals, HHS each scored a win and a loss in recent Supreme Court cases

Photo by Geoff Livingston via Flickr.

Amid issuing some of the most significant rulings this century, the U.S. Supreme Court (SCOTUS) also decided on two cases where certain hospitals challenged federal decisions that cost them money. 

Hospitals scored one win and one loss in these cases. Both cases involved Department of Health and Humans Services (HHS) policies created under Republican presidents that the Biden administration sought to defend. 

In Health and Human Services Secretary (HHS) Becerra v. Empire Health Foundation, the Supreme Court split 5-4 in a June 24 decision about a calculation used to decide which hospitals qualify for extra pay for serving many people with low incomes. The Supreme Court found in favor of HHS in this case, disappointing hospital groups.

On June 15 in the American Hospital Association (AHA) v. Becerra case, the Court said in a unanimous decision that HHS erred in the administrative procedures in cutting reimbursement on certain drugs. In this case, the Biden administration had defended a Trump administration bid to compel hospitals to share certain savings they get on medicines with Medicare and people enrolled in the program.

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Acronyms, health care and the poor: Understanding hospital safety net payments

Joanne Kenen

The months-long controversy between Florida and the federal Medicaid program over funding for hospitals and clinics that serve uninsured low-income people drew attention to these uncompensated care pools. In Florida the arrangement is called the Low-Income Pool – better known as “LIP” (a gift to headline writers).

So what are these payments? And how do they differ from a Disproportionate Share Hospital (DSH) arrangement?

At least nine states, including Florida, have some kind of Medicaid waiver arrangement with the federal government that involves payments to safety net hospitals and, in at least some states, community health centers.

Joanne Kenen, AHCJ’s core topic leader on health reform, explains in a new tip sheet. Read more.