Written by Jim Brunson Friday, 26 July 2013 12:01
Hospitals in Hidalgo County may be receiving up to $25.2 million in Medicaid reimbursements this year, which has historically been left on the table. The hospitals are paying an assessment of $10.5 million through the newly created County Healthcare Funding District to qualify for the federal funding, which will reimburse that amount plus a $1.40 or greater match for each dollar paid in.
The Healthcare Funding District is expected to capture up to $200 million over the next two and one-half years in federal funding for uncompensated indigent health care in the county.
Legislation passed last month in the Texas legislature authorized the formation of Healthcare Funding Districts in Hidalgo, Cameron and Webb counties. Senate Bill 1623, authored by Senator Juan “Chuy” Hinojosa, allows the county to establish an assessment fee on local hospitals. That fee is put into a Local Provider Fund and used for local payments required to draw down federal matching dollars for uncompensated indigent healthcare services.