Disproportionate Share Hospital Payments

Disproportionate Share Hospital (DSH) payments provide financial assistance to hospitals that serve a large number of low-income patients such as people on Medicaid and the uninsured. Medicaid DSH payments are the largest source of federal funding for uncompensated care.

Citations

• Social Security Act, Section 1923
• A.R.S. § 36-2903.01(O)
• Arizona Section 1115 Demonstration Project Waiver, Attachment C to the Special Terms and Conditions (for payments through 2017)
• State Plan for Medicaid, Disproportionate Share Hospital Program (for payments beginning in 2018)

Scheduled Payment Dates

Disproportionate Share Hospital payments are scheduled to be made to private hospitals each fall.

Additional DSH funds are available to hospitals as a part of intergovernmental agreements between AHCCCS, and a political subdivision / tribal government / state university using local funds to match federal DSH funding. For more information, please contact Wendy Ecker.

• NOTES:
• Hospital partners must have final IGAs by June 30, 2026, and matching monies to AHCCCS for DSH 2025 payments by March 1, 2027. Beginning March 2, 2027, any unspent allocation may be reallocated to another hospital.

Template IGA Agreement for 2025 DSH

Payment History

2016-2025