Texas hospitals get $1.1B federal funding boost

Texas hospitals that provide care to Medicaid patients will receive $2.7 billion in federal funding in fiscal year 2021, up $1.1 billion from a year earlier, Texas Gov. Greg Abbott announced July 2. 

The funds are distributed through the Uniform Hospital Rate Increase Program, which boosts Medicaid payments to hospitals to help reduce their Medicaid reimbursement shortfall. Under the program, the Texas Health and Human Services Commission directs additional funding to Medicaid managed care organizations, and eligible hospitals receive a payment increase on claims submitted to those MCOs. 

"This federal funding is a crucial source of support for Texas hospitals that provide care for Medicaid patients," said Mr. Abbott in a news release. "As we respond to the COVID-19 pandemic, the state is committed to ensuring that our hospitals have the resources they need to continue providing care to Texans across the state." 

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