What does the disproportionate share hospital (DSH) adjustment provide?

The disproportionate share hospital (DSH) adjustment is designed to provide additional funding to hospitals that serve a significant number of low-income patients. This adjustment increases Medicare and Medicaid payments to these hospitals, acknowledging that they often face higher financial burdens due to the increased costs associated with treating patients who may not have adequate insurance coverage or the means to pay for services.

This funding is crucial for hospitals that are essential to their communities, especially in areas where a sizable portion of the patient population relies on government assistance programs. By receiving higher payments, these hospitals can continue to offer necessary medical services to vulnerable populations without compromising quality or access to care.

In contrast, the other options do not align with the purpose of the DSH adjustment. It specifically focuses on supporting low-income patient care rather than high-income patients, outpatient funding, or staff training.