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December 12, 2025   
Health Law Weekly

Fifth Circuit Reverses Decision Striking HHS Rule Excluding Uncompensated Care Cost Pools from DSH Calculation

  • December 12, 2025

The Fifth Circuit reversed December 9 a federal district court decision vacating a Department of Health and Human Services (HHS) rule that a group of hospitals in Texas argued unlawfully reduced their disproportionate share hospital (DSH) payments by excluding from the Medicaid fraction patient days paid for by uncompensated care cost (UCC) pools.

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