Save Our Safety-Net Hospitals Act of 2025

S. 2743 would amend the Medicaid program to modify limitations on disproportionate share hospital (DSH) payment adjustments. Safety-net hospitals are facilities that serve large numbers of uninsured and low-income patients. The bill would lift certain restrictions on the financial support these hospitals receive through Medicaid to help offset their costs of providing care to vulnerable populations.

The legislation would allow states to use unused portions of their Medicaid DSH funding allocations to increase payments to hospitals that have incurred costs exceeding what they receive from Medicaid and other insurance programs. This change would apply to payment adjustments made from October 1, 2021 forward. The bill is currently referred to the Senate Committee on Finance and has not yet been voted on by the full Senate.