An evolving DSH payment.

Updates to the Medicare inpatient prospective payment system (IPPS) will change disproportionate share hospital (DSH) payments for coming fiscal years. In FY17, changes to the calculation of Factor 2 will lower the uncompensated care DSH available for allocation. In FY18, the Centers for Medicare & Medicaid Services (CMS) will begin using uncompensated care expenses to determine a hospital's share of payments from the uncompensated care DSH pool.