Why 131 Hospitals Are Suing HHS Over Alleged Underpayment

Katie Adams / medcitynews - A group of 131 hospitals has sued HHS over a CMS policy they say improperly reduces Medicare disproportionate share hospital (DSH) payments. The lawsuit is the latest in a decade-long legal battle over how the agency counts patient days and calculates pay…

AI Summary: One hundred thirty‑one hospitals have filed suit challenging HHS’s 2023 Disproportionate Share Hospital calculation, arguing the agency’s formula undercounts uncompensated care and systematically underpays safety‑net providers. The plaintiffs seek to overturn the rule and recover alleged shortfalls, warning that ongoing underpayment threatens hospital finances and patient access.

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