As of the start of the fiscal year Tuesday, Texas hospitals are losing $27 million a day in additional Medicaid funding, according to the Texas Hospital Association.
The shortfall is the result of a decision by the Trump administration to withhold approval from Texas for about $9.8 billion this fiscal year from three programs, the bulk of which affects the Comprehensive Hospital Increase Reimbursement Program (CHIRP).
This program gives hospitals additional funding to cover the difference between Medicaid rate payments and the actual costs that hospitals incur to provide services to Medicaid patients. Essentially, hospitals, which often are paid less than what they spend on Medicaid patients due to outdated payment rates set by the state, are losing out on their additional reimbursement for 2027.
Source: Texas hospitals say they’re losing $27 million a day in Medicaid funding / The Texas Tribune