Children's Hospitals Face Brunt of Medicaid Cuts in Texas

Texas’ proposed budget cuts will likely have a disproportionate effect on children’s hospitals. The financial implications won't halt operations. But it will mean cutting back on expansions needed to serve a growing population of children and efforts to recruit and retain the best specialists and faculty, said Texas Children’s Hospital's Ben Melson.

The disparity hinges on Medicaid, the joint state-federal health care program that covers nearly three million children in Texas. State lawmakers, facing huge budget shortfalls, cannot find the multibillion-dollar savings they need without cutting already skimpy Medicaid provider rates.