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Commissioners record LPPF rebase recommendation, approve IGTs and related funding actions

McLennan County Commissioners Court · April 22, 2026

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Summary

Hospital representatives asked the court to update the Local Provider Participation Fund revenue base to 2024 audited figures (keeping the 6% assessment rate), which will change invoices to hospitals but is intended to leverage additional federal match; the court recorded the rebase recommendation and approved IGT authorizations including an $815,883.51 transfer.

Representatives for county hospitals asked McLennan County commissioners on April 21 to update the Local Provider Participation Fund (LPPF) net patient revenue base from the 2023 audit to the newly published 2024 audited figures.

Justin Flores (S17) and Michael Neal (S23) said county hospitals saw increases in net patient revenue in the 2024 data and that updating the base would change the dollar assessments while keeping the previously approved 6% assessment rate. They said the rebase is intended to allow local hospitals to leverage additional federal matching dollars; Flores and Neal cited other Texas counties that have updated their bases similarly.

County staff said the rebase would be applied to the state fiscal year period from Oct. 1, 2025, through Sept. 30, 2026, and that the county would handle invoicing procedures to minimize administrative burden. Commissioners recorded the 2026 rebase recommendation for the record, and approved motions authorizing intergovernmental transfers (IGTs) including an IGT request of $815,883.51 for the HARP 2026 second half settlement, and authorized M3C Atlas program funding to be transferred up to the balance on transfer dates.

Staff said prior analysis estimated roughly $80 million in federal dollars remained in McLennan County in FY25 as a result of the LPPF program; speakers emphasized heavy auditing and regulation of the underlying hospital financial data. The court recorded the rebase and approved the IGT authorizations by voice votes.