Medicare’s uncompensated care payments to disproportionate share hospitals (DSHs) are set to rise by $2 billion in FY 2026 – the largest increase since the implementation of the Affordable Care Act.
Read on as we break down the policy and economic shifts driving the surge, including Medicaid redeterminations and a rebound in hospital utilization, and why it matters for budgeting, strategy, and safety-net stability. With major changes ahead from the One Big Beautiful Bill Act, stakeholders should prepare for ripple effects in payment distribution and documentation requirements.
