DC Circ. Opens Door To Lower Medicare DSH Payments

Law360, New York (June 11, 2013, 3:47 PM EDT) -- The D.C. Circuit on Tuesday cleared the way for lower Medicare reimbursements related to admissions of low-income patients, saying federal regulators properly calculated so-called disproportionate share payments and did not act in an impermissibly retroactive manner, the latest blow to hospitals reaping less money for treating the poor.

The decision overturned a district court win by an Iowa division of Catholic Health Initiatives, one of the nation’s largest hospital systems, and marked a larger setback in general for an industry that will see its DSH payments...
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