The Looming DSH Cuts: A Call to Action for Hospitals

With $8 billion in annual Medicaid Disproportionate Share Hospital (DSH) payment reductions scheduled for fiscal years 2025 through 2027, totaling a staggering $24 billion, hospitals serving vulnerable populations are facing a financial crisis. These cuts threaten the financial stability of hospitals, forcing them to make difficult choices—reducing services, cutting staff, or even closing critical programs.

For healthcare executives, the message is clear: Now, more than ever, hospitals must ensure that every eligible patient is enrolled in Medicaid and other available assistance programs. The key to mitigating these financial challenges lies in a comprehensive and strategic approach to patient qualification, and Resource Corporation of America (RCA) stands ready to be your trusted partner in this endeavor.

Maximizing Medicaid Enrollment: The Key to Protecting DSH Payments

The fundamental assumption behind the Affordable Care Act (ACA) was that expanding insurance coverage would reduce the need for DSH payments. However, the reality is that millions of Americans remain uninsured or underinsured. On top of that, recent Medicaid redetermination processes have stripped coverage from countless individuals, increasing the burden of uncompensated care on hospitals already struggling with reimbursement shortfalls.

Without a strong Medicaid eligibility strategy, hospitals risk losing critical reimbursement dollars. Every day of Medicaid-covered care that goes unclaimed equates to lost revenue, making it essential to qualify every possible patient. By implementing RCA’s industry-leading solutions, your hospital can recover millions in Medicaid dollars, ensuring maximum retention of DSH funding and mitigating the impact of the upcoming cuts.

How RCA Helps Hospitals Overcome Financial Strain

RCA’s expertise in patient qualification, Medicaid enrollment, and insurance discovery enables hospitals to:

  • Protect DSH Payments: Identifying every potential Medicaid-eligible patient ensures that hospitals claim all available reimbursement dollars and maintain their DSH funding levels.
  • Preserve Medicaid Days: Medicaid-covered patient days are critical for DSH funding calculations. RCA ensures that no eligible patient slips through the cracks, preserving Medicaid utilization rates.
  • Reduce Uncompensated Care: With aggressive patient outreach, AI-driven analytics, and a dedicated team of specialists, RCA increases the number of qualified Medicaid enrollees, directly offsetting the impact of DSH cuts.
  • Enhance Financial Stability: By recovering revenue that would otherwise be lost, hospitals can continue providing essential services without resorting to layoffs or program reductions.

The Time to Act is Now

Numerous hospitals and health systems have urged Congress to halt the scheduled DSH reductions, and while bipartisan support for delaying these cuts exists, the future remains uncertain. Hospitals cannot afford to take a ‘wait-and-see’ approach.

The reality is that every dollar matters. Ensuring your hospital is maximizing every available Medicaid reimbursement and preserving DSH dollars is not just a financial imperative—it’s a necessity for continued operations.

At RCA, we understand the challenges you face, and we’re here to help you turn this crisis into an opportunity. Our advanced solutions, powered by data analytics and AI-driven patient outreach, ensure that no patient who qualifies for assistance goes unnoticed.

Let’s Talk

If your hospital is facing the potential financial strain of DSH cuts, the time to act is now. Contact RCA today to learn how we can help you protect your revenue, secure every Medicaid dollar, and ensure the long-term stability of your healthcare facility.

Every Medicaid day saved. Every DSH dollar protected. Let RCA show you how to maximize your financial recovery in the face of these upcoming challenges.

Contact us today:

RCAeligibility@resource-corp.com

www.resource-corp.com

281.334.1855