Use of Funds: Were there any restrictions on how hospitals that received Medicaid disproportionate share hospital (DSH) payments could use Provider Relief Fund General and Targeted Distribution payments or ARP Rural payment?

Yes. Providers may not use Provider Relief Fund or ARP Rural payments to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Therefore, if a hospital has received Medicaid DSH payments for the uncompensated costs of furnishing inpatient and/or outpatient hospital services to Medicaid beneficiaries and to individuals with no source of third-party coverage for the services, these expenses would be considered reimbursed by the Medicaid program and would not be eligible to be covered by money received from a General or Targeted Distribution or ARP Rural payment. Read more about the calculation of the Medicaid hospital-specific DSH limit - PDF (PDF).

(Updated 10/27/2022)