Medicaid: Managed Care and Individual Hospital Limits for Disproportionate Share Hospital Payments

Pursuant to a congressional request, GAO reviewed disproportionate share hospital (DSH) payment limits, focusing on: (1) whether state formulas vary in their inclusion of managed care costs and revenues when calculating the maximum amount a specific hospital can receive; and (2) whether such variation is allowed by the Medicaid program; and, if so, (3) Health Care Financing Administration (HCFA) officials' views on setting a uniform policy in this area.