Gov. Greg Abbott

Gov. Abbott, HHSC Secure $2.67 Billion in Federal Funding for Texas Hospitals

This is an increase of $1.07 billion from the previous state fiscal year.


Gov. Greg Abbott and the Texas Health and Human Services Commission announced Thursday that $2.67 billion in federal funding has been approved to support Texas hospitals.

These funds will provide care for people receiving Medicaid.

"This federal funding is a crucial source of support for Texas hospitals that provide care for Medicaid patients," Gov. Abbott said in a press 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." 

Through the Uniform Hospital Rate Increase Program, Texas Medicaid managed care organizations receive additional funding through their monthly capitation rate from HHSC and are directed to increase payment rates for certain hospitals.

The Uniform Hospital Rate Increase Program is a program that provides for increased Medicaid payments to hospitals for inpatient and outpatient services provided to persons with Medicaid.

As designed, eligible hospitals receive a percent increase paid on claims submitted to a Medicaid managed care organization.

"Hospitals in Texas are on the front lines of care and prevention at all times, providing critical emergency and intensive care for people, including those with COVID-19," Texas HHSC Executive Commissioner Phil Wilson said through a press release. "This federal funding is one way we can make sure hospitals have sufficient resources to provide quality care to people receiving Medicaid."

Contact Us