Medicaid and Medicare disproportionate share hospital programs
Congress created the Disproportionate Share Hospital (DSH) program in the early 1980s to help hospitals offset the costs of providing care to low-income individuals. Medicaid and Medicare each have a distinct DSH program, with a unique structure and financing mechanism.
In addition to giving a brief overview of the Medicaid and Medicare DSH programs, this document will:
- Discuss the role of the state and federal governments in running the Medicaid DSH program;
- Explain how the Michigan Medicaid DSH program is financed and structured; and
- Examine the changes to the Medicaid and Medicare DSH programs under the Patient Protection and Affordable Care Act (ACA).
Suggested Citation: Hatch-Vallier, Leah; Udow-Phillips, Marianne. Medicaid and Medicare Disproportionate Share Hospital Programs. January 2014. Center for Healthcare Research & Transformation. Ann Arbor, MI.
Special thanks to Ellen Rabinowitz and Eileen Ellis.