Texas hospitals secure hard-fought $12B Medicaid victory for patients

After months of uncertainty and escalating concern, Texas hospitals hailed a major breakthrough today, with Gov. Greg Abbott’s announcement of federal approval of $12 billion in critical Medicaid funding for Texas patients and hospitals.

Circular blue seal reading'The State of Texas Governor' featuring a star and laurel wreath on a blue background.

Texas hospitals secure hard-fought $12B Medicaid victory for patients

This action removes the immediate threat of billions of dollars in lost healthcare funding that would have upended the Texas healthcare safety net and shuttered critical hospital service lines. Following months of sustained pressure, urgent calls for action and vocal concern about mounting losses – $27 million in losses per day for Texas hospitals – the resolution allows hospitals to move forward with greater certainty.

“We can breathe easier today. The Medicaid crisis hanging over our heads has been averted. We are deeply grateful to Gov. Abbott and other state and federal leaders who listened, took our concerns seriously and acted with urgency to protect Texas patients,” said John Hawkins, president/CEO of the Texas Hospital Association, which championed the movement toward a solution. “Hospitals can focus on what they do best – saving lives and caring for Texans. Our gratitude cannot be overstated.”

Starting Sept. 1, Texas hospitals and other Medicaid providers began losing $27 million every day the Centers for Medicare & Medicaid Services withheld approval of Texas’ Medicaid directed payment programs – critical funding that keeps hospitals staffed, service lines in operation and emergency rooms open. Additionally, these programs help bridge the persistent gap between Medicaid’s low base payment rates and the actual cost of providing care.

Texas hospitals are profoundly grateful for the work of Gov. Abbott, the Texas Health and Human Services Commission, congressional leadership and the federal government for working to restore critical funding that helps ensure the health of Texans and the hospitals that serve them.