The Department of Health and Human Services released to states an additional $268 million in Medicaid funding for Disproportionate Share Hospitals (DSH) in fiscal year 2009, as authorized by the American Recovery and Reinvestment Act.

The Act authorized a 2.5% increase in states' FY 2009 and FY 2010 DSH allotments, for hospitals that serve a disproportionate share of low-income or uninsured patients. States must deplete their existing DSH allotments before they can request the additional FY 2009 funds as part of their quarterly Medicaid budget request to CMS.

"Thousands of hospitals around the country are the first place many families take their sick children for care or the only place where some of the more than 45 million uninsured Americans can receive some form of health care," said Acting HHS Secretary Charles Johnson. "The funding from the Recovery Act will help ensure hospitals can keep their doors open to the people who need care most."

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