The Medicaid program subsidizes indigent care through payments to disproportionate share hospitals (DSHs). The Preamble Hospital is a DSH. As a DSH, Preamble most likely:
I'm going with option B. It just makes the most sense - DSHs serve a higher proportion of low-income patients, so they're more likely to be operating at a loss and need that financial support.
Haha, I bet the people who wrote this question were just trying to trick us. 'Disproportionate share' - that's gotta be the most confusing term in healthcare policy, right?
Hmm, I'm not sure about the capitation payment thing. Isn't the whole idea of a DSH that they get direct payments from Medicaid to help cover the cost of indigent care? The capitation thing sounds more like a managed care arrangement.
C) Receives no payments directly from Medicaid for services rendered but rather receives a portion of the capitation payment that Medicaid makes to the health plans with which Preamble contracts.
As a DSH, Preamble is definitely at a higher risk of operating at a loss. That's the whole point of the Medicaid DSH program - to support hospitals that serve a disproportionate number of low-income patients.
C) Receives no payments directly from Medicaid for services rendered but rather receives a portion of the capitation payment that Medicaid makes to the health plans with which Preamble contracts.
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