Oklahoma State Senate

Oklahoma State Senate
Communications Division
State Capitol
Oklahoma City, OK 73105

DSH Allocation Proposal

For Immediate Release: November 19, 2008

Sen. Tom Adelson

Adelson releases details on Fair Share Hospital DSH Reimbursement Plan

Tulsa Senator Tom Adelson has recalculated the allocation of disproportionate share hospital (DSH) dollars consistent with the principles of taxpayer neutrality set forth by dueling editorials between the state's two largest newspapers.

The total amount available is distributed based on the number of qualifying patients served, rather than the existing formula. DSH is federal funding to safety net hospitals to help absorb the cost of uncompensated care.

"The bill I will be filing will equalize the funding to safety net hospitals throughout the state which provide such important care to Oklahomans in need.” Adelson said.

Stillwater and Cushing will see a gain of over $550,000 a year for their hospitals.

Altus will be allocated more than $240,000 annually than its present DHS payment.

Elk City will have its DSH funds increase by over $293,000 a year.

In Oklahoma City, Integris Baptist and Integris Southwest will see a collective increase in excess of $2.1 million annually. St. Anthony's gains nearly $1.1 million a year, Mercy Health Center adds $551,000 a year. Deaconess DSH payment increases by $451,000 a year.

In Norman, Norman Regional expands by $743,000 a year and JD McCarty gains $385,000.

Tulsa hospitals -- Saint Francis, St. Johns and Southcrest -- share an increase of $3,700,000 a year.
The OSU Medical Center in Tulsa is not a DSH recipient hospital due to its characterization of bad debt vs. charity care charges, a source of ongoing discussions with the Oklahoma Health Care Authority.

"I've attached a complete breakdown of all the hospitals receiving DSH funds in 2008, and how much better they fare under the Fair Share model," Adelson said. "While these figures are preliminary, I believe they are a reasonable estimate of how the DSH funds will be allocated under the new formula."

"All told, 47 hospitals throughout the state will gain over $15 million annually to help them absorb the cost of uncompensated care."

"While the OU University Hospital is the one hospital to experience a lower allocation, the hospital still receives two and a half times more than any other hospital." Adelson said. "Net profit margins at the OU University Hospital would decline -- to just over 10.5% compared to a statewide average of 7.38% for all Oklahoma hospitals.

"As I stated in my previous press release, no hospital should enjoy the exorbitant privilege of having taxpayers reimburse 100% of its charity care plus 100% of its Medicaid care each and every year."

"This proposal illustrates fair and equitable treatment for all our safety net hospitals."