McLennan County sets 6% mandatory hospital assessment to fund Medicaid match

McLennan County’s commissioners voted to set the fiscal year 2026 mandatory payment rate for the county’s Local Provider Participation Fund at 6% during a public meeting on Oct. 8, 2025, approving a resolution to collect assessments from non‑public hospitals to draw down federal Medicaid match.

The move follows an annual public hearing required by state law and implements a cap the county said is permitted under the Texas Health and Safety Code. County staff described the LPPF — Local Provider Participation Fund — as a mechanism through which assessed payments from private hospitals are pooled by the county, submitted to the Texas Health and Human Services Commission as an intergovernmental transfer (IGT), matched with federal Medicaid funds, and returned to hospitals as supplemental and directed payments.

“How the program works is the county collects mandatory assessments from non‑public hospitals, deposits those funds for…