Board switches Medicaid reimbursement consulting to Houston ISD enterprise after revenue shortfalls
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Summary
Trustees approved replacing the district’s current Medicaid reimbursement vendor with the Medicaid financing consulting services division of Houston ISD, citing the current vendor’s underperformance and the new provider's track record of maximizing revenue.
The board approved a change in Medicaid/Medicare reimbursement consulting services, moving from the district’s current vendor to the Medicaid financing consulting services enterprise run by Houston ISD. District finance staff said the current vendor had under‑delivered on projected revenue over the past two years, forcing use of fund balance to cover shortfalls; administration recommended Houston ISD’s enterprise because it serves many districts and claimed a stronger revenue track record.
Board discussion clarified that Houston ISD’s service operates as an enterprise fund and its staff are Houston ISD employees rather than an independent nonprofit. Trustees asked about cost and performance differentials; the CFO said the current vendor charged roughly double what was now being recommended and had not produced the expected revenue. A motion to switch to Houston ISD’s Medicaid financing consulting services was moved, seconded and approved by unanimous roll call.
Why it matters: Medicaid reimbursement streams can materially affect special‑education and related program funding. The change in vendor aims to improve revenue recovery and reduce pressure on the district’s fund balance.