THC - Supreme Court Medicare payment ruling goes against hospitals

A U.S. Supreme Court decision Friday on how the Department of Health and Human Services computes Medicare payments is seen as negatively impacting hospitals. In a 5-4 decision with the majority opinion written by Justice Kagan, the Court ruled that the way HHS calculates Medicare payments to hospitals that treat low-income patients is correct. The challenge in the case involved the formula used by HHS to calculate Medicare's disproportionate share hospital adjustments, also known as DSH payments. Despite the ruling, hospital companies are all trading slightly higher: HCA Healthcare (NYSE:HCA), Community Health Systems (NYSE:CYH), and Tenet Healthcare (NYSE:THC). The case is Becerra v. Empire Health Foundation.

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Supreme Court Medicare payment ruling goes against hospitals