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Texas hospitals fall short in an appellate ruling about disproportionate share hospital payment calculations

Summary by Hfma
An appeals court dealt hospitals a defeat in a case about Medicare disproportionate share hospital (DSH) payments, reversing a lower court’s prior ruling on jurisdictional grounds last week. A Dec. 9 decision by a three-judge panel at the U.S. Court of Appeals for the Fifth Circuit means certain Section 1115 waiver days can remain excluded from a hospital’s tally of Medicaid patients as an input in the Medicare DSH formula, pending further admin…
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hfma broke the news in on Wednesday, December 17, 2025.
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