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Recent Court Decision May Impact Some Hospitals’ 340B Eligibility

Ruling is latest twist in dispute over how to calculate disproportionate share percentage
 

Print Article

April 2, 2013—A recent ruling in the ongoing legal battle over how to calculate safety-net hospitals’ disproportionate share (DSH) percentages could affect some hospitals’ participation in the 340B drug discount program.

In its March 27 decision in Metropolitan Hospital v. U.S. Department of Health and Human Services, the U.S. Court of Appeals for the Sixth Circuit upheld a 2004 Centers for Medicare and Medicaid Services (CMS) regulation that includes days for dual-eligible patients who have exhausted their Medicare Part A benefits in the Supplemental Security Income (SSI)/Medicare fraction of a hospital’s DSH percentage. 


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