We were interested in estimating what the hospital's margin would have been in the absence of DSH payments. We subtracted actual Medicare DSH payments and, for Wisconsin hospitals, the amounts reported by the state in FY1998 Medicaid DSH payments from net income. For New York and California hospitals, we subtracted the hospital's "new" Medicaid DSH payments, i.e. the difference between the DSH payments it received and its contributions to the DSH fund from net income. We calculated total margins (operating and non-operating) for California and Wisconsin hospitals net of "new" DSH. Our information for New York hospitals was limited to operating margins.