June 9, 2000

AAMC Submits Amicus Brief on Medicaid DSH Issue

The AAMC and 8 other hospital groups May 31 submitted an amicus brief to the United States Supreme Court. The brief supported Children's Seashore House, now part of the Children's Hospital of Pennsylvania, in its bid to have the Supreme Court hear its appeal of a decision by the U.S. Court of Appeals for the Third Circuit. That court found that the Children's Seashore House did not have an enforceable right of action under the Medicaid law against the state of New Jersey when it chose not to pay Children's Seashore, a Pennsylvania hospital, a disproportionate share (DSH) adjustment that was paid to in-state providers that cared for New Jersey Medicaid recipients.

The associations are concerned that if the Third Circuit's decision is left to stand, it will threaten the ability of disproportionate share hospitals to enforce Medicaid's DSH provisions and may affect the ability of such providers to provide essential healthcare services to American's poor, underinsured and uninsured. In addition, the Ninth Circuit Court reached an opposite conclusion from the Third Circuit, thereby adding to the confusion on this issue.

Information: Ivy Baer, AAMC Division of Health Care Affairs, 202-828-0490.