TABHS Encourages Texas Senate to Increase Medicaid Funding for Freestanding Behavioral Health Hospitals

Brittney Dick highlighted 2007 as the Last Medicaid Increase for the Hospitals; Texas HHSC Exceptional Item

February 4, 2025

AUSTIN, TEXAS (February 4, 2025) – Brittney Dick testified on behalf of the Texas Association of Behavioral Health Systems (TABHS) at the Texas Senate Committee on Finance’s hearing on the budget base bill and urged the Senate to provide a Medicaid increase to private freestanding behavioral health hospitals.

“2007 was the last time there was a Medicaid payment increase for private freestanding behavioral health hospitals, and rates were reduced in 2010 and again in 2011. These cuts have never been restored,” Ms. Dick said. “This incredibly low reimbursement rate makes it challenging to meet the ever-increasing demand for mental health services. Since 2010, the state’s population has grown by more than 4 million people, yet only 91 new beds have been added.”

Recognizing the severity of the state’s inpatient behavioral health needs, the Texas Health and Human Services Commission (HHSC) included an Exceptional Item in their Legislative Appropriations Request for freestanding behavioral health hospitals. HHSC indicated that the Medicaid rate is “significantly lower than rates for similar services,” and that increases in the rates would “positively impact patient access to high quality care.”

TABHS recommends that the 2025 Texas Legislature should invest $80 million over the biennium to increase the base reimbursement rates for freestanding behavioral health hospitals.

Click here to learn more about Medicaid and inpatient behavioral health care in Texas.

Click here to learn more about TABHS’s Medicaid request for 2025. 

About TABHS

TABHS was founded in 2024 to serve as the united voice for over 60 private freestanding behavioral health hospitals that provide the highest level of inpatient and outpatient behavioral health care to Texans.

Visit www.www.tabhs.com to learn more.