tci Medicare Compliance & Reimbursement - 2003 Issue 12

Medicaid: OIG, LONE STAR STATE SPAR OVER DSH

Texas hospitals that serve significant numbers of low-income and uninsured patients would likely face Medicaid reimbursement shortfalls if the state’s health department heeds recent counsel from the HHS Office of Inspector General. But it appears the Lone Star State is sticking to its guns in the way it handles disproportionate share hospital payments. DSH payments are designed to provide added reimbursement to hospitals that provide care to a disproportionate share of low-income patients with special needs. In an audit report released March 10, the OIG says Texas’ Medicaid program overpaid hospitals more than half a billion dollars between...

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