Federal agency OKs Medicaid funding for Texas

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Texas hospitals and other healthcare providers will receive nearly $12 billion in critical funding after months of negotiations finally resulted in federal approval for the state's Medicaid directed payment programs, Gov. Greg Abbott announced on Thursday. 

The approval should ease Texas healthcare sector concerns that had germinated amid the uncertain status of Texas' Comprehensive Hospital Increase Reimbursement Program, Incentives for Physicians and Professional Services, and Rural Access to Primary and Preventive Services for the state's fiscal year that began Sept. 1.

Centers for Medicare & Medicaid Services' approval of the programs, which help fill the gap between Medicaid's low base payment rates and the actual cost of providing care, will allow funding to flow to hospitals, physicians, rural clinics, nursing facilities, and behavioral health providers that serve patients in every region of the state, according to Abbott. 

"Emergency rooms will stay open, rural families will retain local care, and Texans will have access to the treatment they need," he said in a statement. 

The approval delay led to a warning last month from the Texas Hospital Association that without the programs, hospitals and other Medicaid providers stand to lose an estimated $27 million every day.

The resolution allows hospitals to move forward with greater certainty, the hospital group said on Thursday.

"The Medicaid crisis hanging over our heads has been averted," John Hawkins, the group's president and CEO, said in a statement. "Hospitals can focus on what they do best – saving lives and caring for Texans. Our gratitude cannot be overstated."