There Are Two Methods of Qualification for a Hospital to Become

question 15

True/False

There are two methods of qualification for a hospital to become a DSH facility. First, a hospital may qualify for DSH status if they exceed 15% on the statutory formula. The second method for DSH qualification applies to large urban hospitals that may have a high mix of Medicaid or low-income patients.

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Definitions:

Long-term Debt

Borrowed money that a company or individual must repay over a period longer than one year.

Equipment Trade

The act of exchanging one piece of business equipment for another, often to upgrade or replace assets.

Depreciation Expense

The portion of the cost of a fixed asset deducted as an expense over its useful life, reflecting the asset's consumption or wear and tear.

Common Stock

Shares of ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.