CMS Releases Final Rule on Treatment of Dual Eligible Costs in Hospital DSH Limits

On February 23, 2024, CMS released a final rule implementing the new policy on counting third-party payer costs and revenues in the hospital-specific disproportionate share hospital (DSH) cap, as mandated by Congress in the Consolidated Appropriations Act of 2021. The rule excludes third-party costs and revenues from the calculation of hospital uncompensated costs, with an exception for hospitals with high numbers or percentages of patients dually eligible for Medicare and SSI. CMS has since published the list of section 203 excepted hospitals for fiscal years 2022 through 2024. If you are uncertain whether or how this new rule may affect your hospital, reach out to any Eyman Partners attorney to discuss.