SAFE Hospitals Act of 2023 State Accountability, Flexibility, and Equity for Hospitals Act of 2023
The legislation proposes a shift in how states allocate DSH payments, establishing a new framework that would come into effect for fiscal years after 2025. By requiring states to align DSH payments with their poverty ratios and patient care needs, HB990 is designed to ensure that hospitals which cater to underprivileged populations receive adequate support. This primarily focuses on preventing the financial strain on hospitals classified as Tier 1, which are hospitals with the highest Medicaid utilization rates and lowest income usage rates.
House Bill 990, also known as the SAFE Hospitals Act of 2023, aims to amend title XIX of the Social Security Act to develop a new methodology for determining state allotments for Medicaid disproportionate share hospital (DSH) payments. This methodology will be based on state poverty levels, emphasizing the prioritization of DSH payments for hospitals that serve high numbers of low-income patients and have significant Medicaid inpatient utilization rates. The bill seeks to enhance the provision of medical assistance in a manner that reflects the specific needs of states based on their poverty demographics.
As the bill progresses, there could be notable discussions regarding the implications for hospitals that may not fit the new classification system. Some stakeholders might express concerns that the new criteria could disadvantage smaller or rural hospitals which do not serve a high volume of patients but still play a crucial role in their communities. Additionally, there may be debates about the broader impact of these changes on local health systems and hospital funding sustainability, given that the bill significantly alters the current funding landscape.