what is the payment system for the original medicare operates
These hospitals are also known as Pickle hospitals. If a hospital qualifies under this method, the statute provides for a specific Medicare DSH adjustment. 6 Acute Care Hospital Inpatient Prospective Payment System. For hospitals with a DSH patient percentage that exceeds 15 percent, operating DSH payments are based on a statutory formula. The DSH payment. add-on rate is capped at 12 percent of base inpatient. payments for rural hospitals with fewer than 500 beds.