Children’s hospitals lose money on kids with Medicaid

September 12, 2016 8:46 PM

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(Reuters Health) - Children’s hospitals lose more money than other facilities treating children covered by Medicaid and may be under pressure in 2018 when federal payments compensating for this loss are reduced, according to a new study.

Medicaid typically pays less than what it costs a hospital to provide service, the authors write, and U.S. hospitals lost $14.1 billion in 2014 from Medicaid underpayment. Federal Disproportionate Share Hospital payments (DSH) are designed to compensate hospitals that cover uninsured or Medicaid ins...

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