UHS · 10-Q · 2026Q3 · Full report

Medicaid DSH Reductions

UNIVERSAL HEALTH SERVICES INC · 2026-11-06 · Importance 35 · Surprise 24 · In source text

Federal Medicaid disproportionate share hospital (DSH) allotments are scheduled for an aggregate reduction of $8 billion in federal fiscal year 2028. The filing notes that the ACA requirement was amended by subsequent federal legislation.

Key facts

• Medicaid DSH payments could be reduced by $8 billion from current levels in federal fiscal year 2028; UHS does not believe Texas's allocation will materially decrease DSH payments to its Texas hospitals. source
• Federal Medicaid DSH payments are scheduled to be reduced by $8 billion in FFY 2028. source
• UNIVERSAL HEALTH SERVICES INC estimates favorable prior-year Medicare DSH payment impact from the Allina ruling could range from $18 million to $28 million in aggregate, with no assurance the funds will be received. source
• UHS estimates Texas DSH net reimbursements of approximately $29 million for the year ended December 31, 2026. source
• UNIVERSAL HEALTH SERVICES INC's Medicaid DSH payment reductions are scheduled to begin in federal fiscal year 2028. source
• UHS maintained reserves of $35 million as of September 30, 2026 and $33 million as of December 31, 2025 for cumulative Medicaid DSH and UC reimbursements related to its Texas behavioral health hospitals. source

Impact estimates