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Disproportionate Share Hospital Program

The Disproportionate Share Hospital (DSH) Program is a Medi-Cal supplemental payment program. It was established to reimburse hospitals for some of the uncompensated care costs associated with furnishing inpatient hospital services to Medi-Cal beneficiaries and uninsured individuals.
 
There is no application process to become a DSH hospital. Instead, DSH eligibility is determined annually by the Department of Health Care Services using the established Medicaid Utilization Rate (MUR) and Low-Income Utilization Rate (LIUR) formulas. The MUR calculates the ratio of Medi-Cal days to the total patient days. The LIUR calculates the ratio of Medicaid/Medi-Cal revenue to the total paid patient revenue. To be eligible the hospital must have a LIUR in excess of twenty five percent with a MUR of at least one percent, or a MUR of at least one standard deviation above the statewide mean.
 
DSH payments are calculated for eligible hospitals and are disbursed in cycles throughout the state’s fiscal year. An amount totaling to eleven twelfths of the estimated annual total is disbursed during the applicable state fiscal year. The remaining amount is disbursed up to two years after the close of the applicable state fiscal year, upon finalization of the annual total.
 
The types of hospitals and/or health facilities that are eligible to participate in the DSH Program consist of general acute care hospitals, acute psychiatric hospitals, and psychiatric health facilities.

Resources

How to Contact Us

For questions regarding the California DSH Program, please send an email to SB1100@dhcs.ca.gov or call (916) 552-9113.

Last modified on: 5/24/2017 8:15 AM