CPB (Certified Professional Biller) Certification Practice Exam

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Representing a hospital adjustment, what is DSH an acronym for?

Disproportionate share hospital (adjustment)
Diagnosis related groups
Diagnostic and statistical manual
(California) Employment Development Department

The correct answer is: Disproportionate share hospital (adjustment)

The acronym DSH stands for Disproportionate Share Hospital (adjustment). This term is used within the context of healthcare billing and reimbursement, particularly for hospitals that serve a large number of low-income patients or those with significant healthcare needs. The Disproportionate Share Hospital adjustment is a supplemental payment designed to help these hospitals cover the costs associated with the care of uninsured or underinsured patients, ensuring that they can continue to provide necessary services despite the financial challenges they face. In the context of billing and finance, understanding DSH is crucial, as it directly impacts hospital revenue and can influence budget planning and resource allocation. The adjustment acknowledges that certain hospitals incur higher costs due to their patient demographic and ensures that they receive compensatory funds from programs such as Medicaid.