Wichita County sets mandatory hospital participation rate at 5.76% to capture federal matching funds

Wichita County Commissioners on Jan. 28 approved a resolution setting the mandatory payment rate for the county's health care provider participation program at 5.76% of net patient revenue.

United Regional Chief Financial Officer Bob Hurt told the court the local participation fund (LPPF) allows private hospitals to pool local payments that trigger federal matching dollars, which in turn help hospitals cover uncompensated-care costs for Medicaid and uninsured patients. "This year the percentage is '' 5.76," Hurt said, and described the flow of funds: local hospitals remit payments to the county program, the state bundles them and seeks federal matching funds, and some of the matched dollars return to hospitals or managed-care organizations.

Hurt said United Regional serves as the safety-net hospital for a nine-county area and that hospital leaders had consulted with county staff and state legislators while preparing the request. He also told the court that the county receives a modest administrative fee for managing the program; "We're getting $20,000 in administrative fee in order to do the paperwork for the program," Hurt said, adding the fee only offsets the county's administrative costs.

The court opened and closed a public hearing on the item with no members of the public requesting to speak. Commissioner Mahler moved to approve the resolution; Commissioner Beauchamp seconded. The motion passed unanimously, recorded as "motion carries 5." The court set the rate for the fiscal year ending 2025 at 5.76% of net patient revenue.

Why it matters: County and hospital officials said the LPPF is a substitute mechanism in Texas for some federal Medicaid funding that the state has not accessed through Medicaid expansion. County staff will administer the program and return matched federal funds as prescribed by state and federal program rules.

Following the vote Hurt thanked the court for its support.