'It'd be catastrophic': Dallas-area hospitals could lose $1.1B annually without Medicaid waiver, healthcare group warns

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Hospitals in the Dallas-Fort Worth region could collectively lose $1.1 billion in funding each year without a Medicaid waiver extension, a healthcare group warned, according to CBS Local.

The group, Texas Essential Healthcare Partnerships, represents 72 hospitals in the Dallas-Fort Worth region, including those operated by Dallas-based Tenet Healthcare and Houston-based Baylor Scott & White Health. 

In April, CMS rescinded approval for a Section 1115 waiver to extend reimbursement to Texas hospitals for uncompensated care through September 2030. President Joe Biden's CMS said that under the previous administration, CMS and Texas failed to adhere to public comment period requirements in the approval process, so it should be rescinded.  

Don Lee, Texas Essential Healthcare Partnerships, told CBS he's concerned about CMS' decision to rescind the waiver next year and that hospitals could begin feeling the effects in just three months. 

"There's about $330 million of very important mental healthcare funding for mental healthcare services for the poor that will be lost starting in September of this year," Mr. Lee told CBS Local. 

Texas plans to resubmit its application to extend the 1115 waiver soon, according to the report. However, if the new application is not approved, Mr. Lee said that some hospitals in the North Texas region may be forced to close. 

"We believe it'd be catastrophic, not just for the hospitals, but for all Texans," Mr. Lee told CBS Local. 

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