Hi friends,
Seldom is there a result with no downside. There’s good and bad to everything. But this story proves the exception to the rule.
Don’t miss the details below the tale.
Once upon a time, in the land of Paperwork and Payouts, there lived a kingdom of hospitals — some humble and stretched thin, others massive and rich beyond imagination. These were not ordinary hospitals. They were grand palaces of marble lobbies and gleaming towers, run by executives in $10,000 suits with titles longer than medical charts.
These kings of care had already been granted extra gold from the royal treasury — a special bonus for treating poor villagers who carried little silver but much suffering. The program was known far and wide as the “Disproportionate Share Hospital” fund, or DSH for short. And it worked — mostly.
But one day, the Big Hospitals found a clever loophole.
“If we just redefine who counts as poor,” they whispered in boardrooms and law offices, “we can collect more gold — not just now, but retroactively, for years past!”
So they gathered more than 200 of their strongest castles, sharpened their legal spears, and marched to the royal court. “We demand our bonus bags be refilled!” they cried. “We should have received more, and we will again — if you just agree that even those villagers who weren’t truly poor at the time should still count!”
But the kingdom's Treasury, known as HHS, stood firm.
“No,” they said. “Only those eligible for aid on the day they walked through your doors qualify. That’s what the law says. That’s what the rules have always been.”
Still, the hospitals persisted. They went from court to court, claiming injustice. The lower judges read the law and sided with the Treasury. But the hospitals, flush with funds and fire, climbed all the way to the highest mountain: the Supreme Court.
There, nine robed sages gathered, each wise in the ways of law and language. And in one unified voice — led by Justice Amy the Precise — they declared:
“The law is clear. Aid goes to those who are truly eligible, not just vaguely connected. The rules matter. And this kingdom will not be ruled by opportunistic reinterpretation.”
And just like that, the gold stayed where it belonged.
No extra taxes were levied.
No future overpayments would be allowed.
The Treasury’s methods were upheld, honest and intact.
And no villagers lost their care — because this was never about them.
The Big Hospitals slunk back to their towers — a bit embarrassed, but not truly harmed. Their bonuses would have to come from somewhere else. Perhaps fewer retreats in Maui. Perhaps fewer golden parachutes.
And across the land, a cheer went up — from taxpayers, watchdogs, and weary rule-followers who were tired of watching the rich rewrite the rules.
The moral of the story?
Even in a land of bureaucracy, sometimes the good guys win.
And sometimes, “no” is the most fiscally responsible form of love.
U.S. Supreme Court Opinions
Advocate Christ Medical Center v. Kennedy
Docket: 23-715
Opinion Date: April 29, 2025
HHS already had this correct.
The Supreme Court simply upheld existing policy, which means:
No retroactive payouts to hospitals
No refund demands from hospitals
Just confirmation that the rule was legally sound all along
No Patient Harm or Loss of Benefits (The ruling affects only hospital accounting and reimbursement formulas — specifically how they calculate what portion of their patients qualify)
Hospitals still get extra money for treating high numbers of poor patients — just not as much as they were hoping to squeeze out.
This is purely a behind-the-scenes billing issue, not a service-level issue.
Large hospital systems are the mega health networks, many of which:
Are tax-exempt nonprofits
Have billions in assets
Continue to acquire smaller hospitals, merging into larger corporate medical entities
According to 2023 IRS data and hospital association watchdogs:
The median nonprofit hospital CEO salary at major systems exceeded $3 million/year
Some hospital networks operate like hedge funds with hospital wings — investing in real estate, startups, and global tech.
Hospitals — especially large systems — tried to reinterpret the rules for low-income patient reimbursement under Medicare, arguing that even people who didn’t qualify for a check that month should count. They’d been losing in court, but pushed the issue all the way to SCOTUS in a coordinated legal effort, likely motivated by financial pressure after COVID.
This ruling reinforces:
Tighter government oversight of Medicare/Medicaid reimbursement
Less opportunity for creative accounting or legal loopholes in health funding
A message to other industries: Don’t expect SCOTUS to bend over backward for opportunistic revenue grabs
And in the big picture:
It supports the taxpayer interest
Doesn’t harm patients
Might even indirectly benefit rural hospitals by preventing large systems from dominating the pool of DSH funds
This was one of those rare cases where:
The law was followed
SCOTUS was unanimous
Taxpayers were protected
Patients weren’t harmed
And mega-hospitals were told “no” in court
SCOTUS agreed with HHS that only truly eligible patients — those getting actual payments that month — should count. That closes the door on future overpayment claims and potentially saves taxpayers hundreds of millions, possibly more over time.
As always, do your own research; make up your own mind.
References to other sources do not necessarily reflect my opinions, and I make no claim to their veracity or completeness. I provide them for your consideration.
(AI may have been used in this article.)
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It's high time "Big Health" is made to heal in all its big business forms. Money and power over serving people with health issues should be discouraged in all situations, but they are not. Keeping people in treatment rather than curing patients maintains the money flow for the medical industrial complex.
The Hippocratic Oath is dead and buried. If left in their hands, we'd remain at the mercy of the medical system and science.
Great article, Ellen. I love the storybook form you used!
I'm surprised, happy, and in shock that SCOUS made a unanimous decision against the money-hungry.