Texas bishops thank Gov. Abbott for securing Medicaid funding for vulnerable patients and Texas hospitals
The bishops had warned that withheld payments would affect children, rural communities
AUSTIN — The Texas Catholic Conference of Bishops (TCCB) applauds Governor Greg Abbott’s actions which resulted in the Centers for Medicare & Medicaid Services’ resolution of a Medicaid hospital-payment dispute that was withholding an estimated $27 million per day from Texas hospitals. In a Sept. 14 letter, the bishops requested CMS “to take immediate action to come to an agreement with the State of Texas on how Texas can finance Medicaid hospital payments.”
Medicaid’s base payment rates often fall well below hospitals’ actual costs of treating patients. Texas uses local provider participation funds—financed through assessments on hospitals and administered by local governmental entities—to supply the nonfederal share of supplemental Medicaid payments. The federal government then provides matching dollars through approved directed-payment programs, principally the Comprehensive Hospital Increase Reimbursement Program, or CHIRP.
CHIRP accounts for roughly $9.15 billion of the affected amount; the remaining funding involves physician and rural-clinic programs.
CMS approved Texas’ Medicaid payment structure through 2030, yet the fiscal year that began Sept. 1 was the third consecutive year in which the agency had withheld these payments while questioning the financing system.
In a statement announcing the authorization, Gov. Abbott said, “This funding is a major victory for Texas patients. It authorizes nearly $12 billion for hospitals, physicians, rural clinics, nursing facilities, and behavioral health providers that serve patients in every region of our state. Emergency rooms will stay open, rural families will retain local care, and Texans will have access to the treatment they need. I thank CMS and the Trump Administration for helping ensure Texans get the medical care they need.”
According to the Texas Hospital Association, the withheld payments would have affected all 649 Texas hospitals and support care for low-income and medically vulnerable patients. Children account for 61% of the Texas Medicaid population, according to the Georgetown University Center for Children and Families.
“As pastors, the bishops know firsthand how much Texas’ most vulnerable residents rely on Texas hospitals for their very survival,” explained TCCB Executive Director Jennifer Carr Allmon. “Losing access to care due to lack of funding is unconscionable.”
The bishops grounded their appeal in Catholic teaching on human dignity and care for vulnerable people. Quoting Pope Leo XIV, the bishops wrote that “health cannot be a luxury for the few” and that health care “must be accessible to the most vulnerable, not only because their dignity requires it but also to prevent injustice from becoming a cause of conflict.”
The Texas Catholic Conference of Bishops is the association of the Roman Catholic bishops of Texas. The TCCB represents 15 dioceses and 23 active bishops. Through the TCCB, the bishops provide a moral and social public policy voice, accredit the state's Catholic schools, and maintain archives that reflect the work and the history of the Catholic Church in Texas.
Catholic health care in Texas includes 58 acute care hospitals, 12 skilled nursing facilities, 68 clinics and 27 other services. In the past year there were 332,414 inpatient admissions, 1,704,794 emergency room visits and 6,242,681 outpatient visits, according to the Catholic Health Association of the United States.