CPB Certified Professional Biller Certification Practice Exam

Why are disproportionate share hospitals important in healthcare?

1. They provide basic healthcare services

2. They receive additional payments to serve low-income patients

3. They specialize in high-cost surgeries

4. They only operate in urban areas

The correct answer is: They receive additional payments to serve low-income patients

Disproportionate share hospitals (DSHs) play a crucial role in the healthcare system primarily because they receive additional payments to help them provide services to low-income patients. These hospitals serve a significantly higher proportion of vulnerable and underserved populations, including those who are uninsured or Medicaid recipients, compared to other hospitals. The additional funding they receive from government programs is designed to offset the financial strain of caring for patients who may be unable to pay for services, thus ensuring that these facilities can continue to operate and provide necessary healthcare services to those in need. While DSHs may also provide basic healthcare services, the key aspect that differentiates them is their focus on supporting low-income patients through enhanced funding. Their designation and the resulting financial support help maintain access to essential services in communities that may otherwise face significant healthcare challenges. Additionally, disproportionate share hospitals can be found in both urban and rural settings, and while they may handle various medical services, they do not necessarily specialize in high-cost surgeries alone.