Issue Brief 17-38
November 17, 2017

On November 3, the Centers for Medicare & Medicaid Services (CMS) published a notice in the Federal Register that provides preliminary fiscal year (FY) 2017 disproportionate share hospital (DSH) allotments, and final FY 2015 allotments. (Preliminary FY 2016 allotments were released October 2016.)

Overall, the preliminary FY 2017 DSH allotments are $107 million (0.9%) more than FY 2016. Initially, states expected to see significant reductions in DSH payments under the Affordable Care Act (ACA) beginning in FY 2014. These cuts have been delayed multiple times, most recently until FY 2018. The House recently passed legislation to eliminate the reductions in FY 2018 and FY 2019, but the Senate has yet to act.