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$984 million in funding will help private, rural Texas hospitals provide crucial care

Texas Governor Greg Abbott recently announced that the Texas Health and Human Services Commission (HHSC) secured $984 million in annual funding to support private hospitals throughout the state.

Texans across the state will now have greater access to the healthcare services they need with this additional annual funding. I applaud the Texas Health and Human Services Commission for their tireless work in securing approval from the Centers for Medicare and Medicaid Services for Texas’ plan to fund hundreds of private hospitals, providing crucial care to millions of Texans. Working together, we will ensure Texans in rural and border communities have the healthcare access they need and deserve for generations to come.

Governor Abbott

We value our partnerships with these safety net providers across the state and know this funding will have a positive impact in Texas communities.

HHSC Executive Commissioner Cecile Young

The additional funding will reach hundreds of hospitals through Medicaid Graduate Medical Education (GME) supplemental payments and the Hospital Augmented Reimbursement Program (HARP). Many of the payments will reach rural hospitals along the border that provide healthcare for millions of Texans.

The funding comes after HHSC submitted requests to the Centers for Medicare and Medicaid Services (CMS) to amend the state Medicaid plan and allow payments to privately owned or operated hospitals.

The estimated $875 million through HARP payments are for private hospitals that provide inpatient and outpatient services for Texas Medicaid clients. The estimated $109 million in annual GME payments support teaching hospitals that operate state-approved medical residency training programs. The additional funding will support teaching hospitals that treat patients with complex conditions and provide care that is intensive and technologically sophisticated.

On Tuesday, CMS approved the GME program retroactively to April 1, 2019, and the HARP program retroactively to October 1, 2021. HHSC requested CMS to amend the Medicaid state plan for the GME program in 2019 and the HARP program in 2021 but were left pending with CMS disagreeing on the source of the state’s share of matching funds for HARP and GME payments.