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Medicaid Disproportionate Share Hospital Program
Purchaser: Texas Department of Health
Program: Medicaid Disproportionate Share Hospital Program

Description: Federal law provides for Medicaid financial assistance to hospitals that care for large numbers of patients who do not have health insurance or other sources of reimbursement for care. Hospitals qualify for the Medicaid Disproportionate Share Hospital (DSH) program based on the overall cost of treating these low-income patients.

In Texas, the federal share of these costs is about 62 percent of each dollar spent on uninsured patients and is capped at $1.6 billion for fiscal 1999. The allocation of the funds is based on fiscal 1997 expenditure data.

Texas Total, Fiscal 1999

State-Financed Facilities: $489,214,764 Gross DSH
Other Hospitals Gross DSH Total Inter
Large Urban Public Hospitals $644,581,954 $390,069,853 $253,512,101
Children’s Hospitals 39,022,558   39,022,558
Urban Hospitals 277,019,631   277,019,631
Rural Hospitals 77,780,342   77,780,342
Total $1,038,404,485 $390,069,853 $648,334,632

Source: Texas Department of Health.