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Court strikes down HHS change to low-income payment formula in win for Texas hospitals

Writer's picture: Tex PatientsTex Patients


A Texas district court has overturned a Biden administration regulation from 2023 tweaking how hospitals that serve a large low-income population are paid by Medicare.


Baylor All Saints Medical Center in Fort Worth, Texas, and roughly a dozen other hospitals in the state sued the HHS in May arguing the change was illegal and would cost them a significant amount of their DSH revenue. On Thursday, a judge agreed the provision was illegitimate in striking it down.


It’s a big win for hospitals in the state, more of which should qualify for add-on payments for disproportionate share hospitals as a result.


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