MedicaidAdministrativeLow impact
HASA 22-17
Michigan Medicaid - MDHHS·MI·Provider Bulletin
We identified it
Jun 20, 2026
Summary
Michigan is consolidating its Disproportionate Share Hospital (DSH) process from multiple steps to two steps by removing the interim settlement step. The final DSH settlement will now occur only at Step 2 Final DSH Audit Settlement stage with revised fund allocation methodology.
Action Required
No immediate action required for billing teams. This policy affects hospital DSH fund allocation methodology and settlement processes, which are handled at the administrative/finance level rather than day-to-day billing operations. Hospitals should monitor for CMS State Plan Amendment approval notifications.