Issue Brief 16-09
February 26, 2016

On February 2, 2016, the Centers for Medicare & Medicaid Services (CMS) published a notice in the Federal Register that provides preliminary fiscal year (FY) 2015 disproportionate share hospital (DSH) allotments, and final FY 2013 allotments. The release includes separate limits for DSH payments to institutions for mental disease (IMDs) and other mental health facilities.

Overall, the preliminary FY 2015 DSH allotments are $240 million (2.1%) more than FY 2014. Initially, states were expected to see significant reductions in DSH payments under the Affordable Care Act (ACA) beginning in FY 2014. However, these cuts have been delayed multiple times, most recently until FY 2018.