Burnet County seeks fund for hospitals to recoup Medicaid treatment costs
Burnet County commissioners passed a resolution asking state lawmakers to draft legislation for a Local Provider Participation Fund, which could unlock up to $27 million in federal funding for local hospitals, including Ascension Seton Highland Lakes in Burnet. Staff photo by Elizabeth De Los Santos
Burnet County commissioners are pushing for state lawmakers to draft legislation that could help local hospitals recover costs for treating uninsured and Medicaid-dependent patients without raising taxes on residents.
Commissioners voted Feb. 25 to send letters asking Sen. Pete Flores and Rep. Ellen Troxclair, who represent Burnet County in the Texas Legislature, to create bills that, if passed, would allow the county to establish a Local Provider Participation Fund.
An LPPF lets hospitals access federal matching funds without relying on taxpayer dollars. If Burnet County were under this system, Baylor Scott & White Medical Center-Marble Falls and Ascension Seton Highland Lakes in Burnet would pay into a county-managed fund and the contributions would then be matched with federal Medicaid dollars.
“About 29 percent of Burnet County residents are either uninsured or on Medicaid,” said Robin Oldham, policy director with Adelanto Healthcare Ventures, during the Tuesday meeting of the Burnet County Commissioners Court. Oldham was speaking on behalf of the two local hospitals. “Hospitals provide the same level of care to every patient, regardless of their ability to pay. However, they lose money on every uninsured or Medicaid patient they treat. The LPPF helps recover some of those costs by unlocking federal funds.”
Oldham explained that, in Texas, federal matching funds typically exceed the amount contributed by hospitals.
“It’s about a 60-40 percentage match,” she said.
Based on this formula, local hospitals could gain access to up to $27 million in additional support for uncompensated care. This would not require new taxes on county residents and or rely on state revenue.
Previously, Burnet County hospitals relied on Williamson County’s LPPF to access funding. However, this arrangement is no longer an option.
According to Oldham, more than 32 counties and local jurisdictions in Texas currently use LPPFs.
“The LPPF has become the primary funding tool in Texas for Medicaid and uninsured care,” she said.
NEXT STEPS
Before Burnet County can officially establish an LPPF, a bill must be passed in the Texas Legislature. Each LPPF requires authorization at the state level.
“This bill is the first step,” Oldham said. “Once it’s passed, the county can formally create an LPPF through an ordinance and a public hearing. The hospitals have done most of the groundwork, but county support is critical to moving the process forward.”
An LPPF would help meet patient needs at the Marble Falls and Burnet hospitals.
“This is not a cost to the county,” Oldham said. “It’s a way for hospitals to keep money in Texas that would otherwise go to other states.”
3 thoughts on “Burnet County seeks fund for hospitals to recoup Medicaid treatment costs”
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Universal Healthcare is the answer. And making medical school free or low cost.
Let’s make sure that only the people that truly qualify for Medicaid receive benefits, Burnet county should have more questions about the LPPF before signing on, only 32 out of 254 counties participate. Hospitals can access up to $27 million in additional support, money doesn’t grow on trees. Guarantee taxpayers are paying for this.
This problem is about to get a WHOLE lot worse if the republican budget passes in DC. Be careful what you wish for! Medicaid is about to get gutted.