Another win for hospitals: Courts reject HHS' attempt to narrow DSH payment calculations

On November 13, 2020, the D.C. Court of Appeals upheld a key ruling regarding disproportionate share hospital (“DSH”) payments, in Bethesda Health Inc. v. Azar, a significant victory for hospitals. Hospitals that treat a disproportionate number of patients under Medicaid receive a higher rate of reimbursement under Medicare to offset those costs incurred – in the form of DSH payments.