Medicaid Disproportionate Share Hospital Payment

This study examines the association between hospital uncompensated care and reductions in Medicaid Disproportionate Share Hospital (DSH) payments resulting from the 1997 Balanced Budget Act. We used data on California hospitals from 1996 to 2003 and employed two-stage least squares with a first-differencing model to control for potential feedback effects. Our findings suggest that nonprofit hospitals did reduce provision of uncompensated care in response to reductions in Medicaid DSH, but the response was inelastic in value. Policymakers need to continue to monitor uncompensated care as sources of support for indigent care change with the Patient Protection and Affordable Care Act (ACA)

Actuarial science · Business · Economic growth · Economics · Family medicine · Health care · Medicaid · Medical emergency · Patient Protection and Affordable Care Act · Payment · Uncompensated Care · Finance · Global Health Care Issues · Healthcare Policy and Management · Healthcare Systems and Reforms · Medicine · Nursing

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