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Wednesday, October 8, 2014

FEDS HOLD $75 MILLION FROM TEXAS HOSPITALS ON MEDICAID WAIVER QUESTION


Questions about the source of the dollars some Texas hospital districts are using to obtain matching funds from the Centers for Medicare & Medicaid Services (CMS) under the Section 1115 Medicaid waiver program have led CMS to withhold $75 million in payments for uncompensated care to hospitals in the Dallas, Austin, and Corpus Christi areas. “It appears that the [Texas money] may be derived from funds that the government entity previously would have spent on providing the services that are now being provided/funded by the private entity and/or direct payments made to the governmental entity from private entities,” CMS officials wrote to state Medicaid Director Kay Ghahremani. CMS will defer further payments pending its investigation.

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