400 Hospitals Ink Uncompensated Care Deal With Medicare

Law360, New York (July 14, 2016, 11:11 PM EDT) -- More than 400 hospitals have entered a confidential settlement of long-running litigation over disputed calculations of Medicare reimbursement for uncompensated care, according to court records filed Thursday and sources with direct knowledge of the deal.

The court records filed in D.C. federal court disclosed the settlement of several lawsuits launched as far back as 2010 challenging calculations of so-called disproportionate share hospital payments, or DSH payments. According to sources who requested anonymity, roughly 430 hospitals and 1,700 cost years of DSH reimbursement are covered by the settlement — about four cost years per hospital, on average.

The settlement terms are confidential,...

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