News: DSH reductions to take effect October 1, AHA issues criticism

The American Hospital Association (AHA) has urged Congress in an open letter to remove the Medicaid disproportionate share hospital (DSH) program reductions scheduled for October 1, 2025.

The DSH program is designed to “alleviate both Medicaid underpayment and uncompensated care costs to ensure patients have access to critical services in their community,” according to the AHA letter.

“Given recent legislative changes to the Medicaid program that will have a significant impact on coverage and access to care, we expect Medicaid DSH funds will be an increasingly vital resource to ensure DSH hospitals can continue to provide essential services to their communities,” the AHA wrote.

Ten million Americans are predicted to be uninsured by 2034 due to the recently enacted Congressional budget reconciliation package, according to a new estimate from the Congressional Budget Office (CBO).

Editor’s note: To read the AHA letter, click here. To read the CBO estimate, click here.