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Alaska Psychiatric Institute cites DSH reduction, staffing vacancies; agency plans coding review and SHARP funding

House Finance Family and Community Services Subcommittee · February 6, 2025
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Summary

DFCS officials told lawmakers that CMS's reduction to the Disproportionate Share Hospital allotment and declining revenue collections could create a roughly $4.6 million gap for the Alaska Psychiatric Institute in FY26; the department said it hired a contractor to improve coding and billing and is proposing $200,000 for the SHARP recruitment program to address staffing shortages.

Department of Family and Community Services officials told the House Finance Family and Community Services Subcommittee on Feb. 6 that the Alaska Psychiatric Institute faces a projected revenue shortfall in FY26 and is pursuing billing and recruitment measures to close the gap.

Assistant Commissioner Marion Sweet said the department received notice from the Centers for Medicare & Medicaid Services that the Disproportionate Share Hospital (DSH) allotment for…

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