CEOs of 5 Private Health Systems in Texas Oppose New Indigent Care Model

Upset over a new agreement regarding Disproportionate Share Hospital payments for fiscal year 2012, five CEOs of the largest private health systems in Texas wrote a letter to Gov. Rick Perry and asked for a meeting to voice their concerns over the new model, according to a Texas Tribune report.

The presidents and CEOs of Dallas-based Baylor Health Care System and Texas Health Resources and Houston-based Christus Health, Hospital Corporation of America Texas and Memorial Hermann Health System said the negotiations of restructuring the Medicaid DSH program "have deteriorated to a point where we are now faced with the real possibility of government largesse at the expense of the private sector," according to the letter (pdf). "Such a trend inevitably leads to government-run healthcare in Texas."

Their letter is in response to the Texas Health and Human Services Commission (pdf), which after speaking with four large, urban public hospital systems decided to adjust the DSH payments so public hospitals would be able to receive more funding. This would come at the expense of public hospitals, who argue they provide most of the uncompensated care in the state.


A spokesperson for the HHSC said public hospitals have submitted their local tax funds to draw a federal match for uncompensated care at private and rural hospitals, and the new waiver format would be "used to reduce uncompensated care and improve outcomes in their communities," according to the report.

Gov. Perry's office received the letter, although no meeting has been scheduled with the private health systems.

More Articles on Hospital Uncompensated Care:

Moody's: Any Supreme Court Outcome Likely to Hurt Non-Profit Hospitals

Michigan Gov. Rick Snyder Vetoes $10M in Uncompensated Hospital Care

California Hospital Association: 2012 Looks Bleak for State Hospitals

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