# Understanding the Protect DSH Act

This bill delays scheduled payment cuts to certain hospitals that serve large numbers of low-income patients on Medicaid. These hospitals are called "disproportionate share hospitals" or DSH hospitals because they handle a disproportionately large share of uninsured and Medicaid patients. The bill pushes back when these payment reductions would take effect, moving them from 2026-2028 to 2029-2031, essentially giving these hospitals three extra years before facing the cuts.

DSH hospitals are typically safety-net institutions—think of your local public hospital or a major medical center in a lower-income area that can't turn away patients who can't pay. These hospitals receive extra Medicaid funding to help offset the costs of treating so many uninsured and low-income patients. However, Congress had already scheduled these extra payments to be reduced starting in 2026 as part of previous budget decisions. This bill simply delays when those reductions kick in.

The practical effect is that affected hospitals will continue receiving their current level of Medicaid payments for three more years, giving them additional time to adjust their budgets and operations before the cuts arrive. For patients, this means these hospitals should maintain their current level of services and staffing during this extended period. However, it's important to note that the cuts aren't being eliminated—they're just postponed. Eventually, these hospitals will still face reduced Medicaid payments unless Congress acts again to prevent or modify the cuts further down the road.