FY 2017 Uncompensated Trauma Care Fund Distribution - June 2019

The Texas Department of State Health Services (DSHS) Office of EMS & Trauma Systems is pleased to announce that the final disbursement for the FY 2017 Uncompensated Trauma Care Fund distributions will occur the week of June 24, 2019.  


The disbursement will serve two purposes: 1) Ensure that any hospital that received the Medicaid SDA “Trauma Add-On” did not receive less than the amount calculated for the DSHS FY 2017 uncompensated trauma care disbursement; and 2) Distribute funds in the Comptroller Account # 5111 to all hospitals that were eligible for the FY 2017 Uncompensated Trauma Care disbursement.  

As reminder and for reference, see New Process for Hospitals receiving SDA “Trauma Add-On” below for more information.

Background Info on the Accounts:

Texas Health and Safety Code Chapter §780.004 directs DSHS to use 96% of funds in the DTF/EMS Account (3588 monies - 5111) to fund a portion of uncompensated trauma care provided at hospitals designated as state trauma facilities or a hospital meeting “in active pursuit” requirements.

Uncompensated Trauma Care Disbursement Methodology: 

Calculations are made in the following manner: 

  • Calendar Year (CY) 2015 uncompensated trauma care charges reported by eligible hospitals on the Fiscal Year (FY) 2017 Uncompensated Trauma Care Fund Application (Hospital Allocation) were used in the funding formula.
  • Fifteen percent (15%) of the total amount of funds available was divided equally amongst all eligible applicants.
  • The remaining eighty-five percent (85%) was distributed to eligible applicants based on the percentage of uncompensated trauma care a hospital provided in relation to the total uncompensated trauma care provided by all the eligible hospitals that applied.

Process for Hospitals receiving SDA “trauma add on”

In an effort to maximize the availability of Federal Funds under Medicaid for the purposes of providing reimbursement for uncompensated trauma care at designated facilities and providing increases in Medicaid inpatient provider rates, the Department of State Health Services (DSHS) and the Health and Human Services Commission (HHSC) entered into an interagency contract to allow for the transfer of funds from General Revenue-Dedicated Designated Trauma Facility and EMS Account No. 5111, from DSHS to HHSC for this purpose. This interagency contract would allow for the transfer of the Account No. 5111 funds to the extent that the use of these funds in this manner would not reduce reimbursements that otherwise would have been provided for uncompensated trauma care to designated facilities. 

DSHS is required to follow the same methodology as in years past to calculate the amount of the uncompensated trauma care disbursement for each eligible hospital, including the SDA hospitals receiving the “trauma add on.”  DSHS has entered the data provided in the FY 2017 Uncompensated Trauma Care Applications to calculate the formula to determine the disbursement amounts for the DSHS FY 2017 uncompensated trauma care disbursement.  HHSC provided DSHS with the amounts hospitals received from the SDA “trauma add on.” The rule requires that DSHS compare the total amount each SDA hospital received in the HHSC “trauma add on” payments to the amount calculated for the DSHS FY 2017 uncompensated trauma care funding disbursement. If a hospital receives less in the FY2017 “trauma add on” payments than in the amount calculated for the DSHS FY 2017 uncompensated trauma care disbursement, then DSHS will make a disbursement to the hospital to cover the difference. If a hospital receives more from the HHSC “trauma add on” payments than the DSHS uncompensated trauma care disbursement, then the hospital will not receive a payment from DSHS in FY 2017. 

The calculation spreadsheet indicating disbursement amounts for each hospital (SDA and non-SDA hospitals): 
FY17 Final 3588 Disbursement Summary June 2019

The total amount of disbursed payments for the FY 2017 Uncompensated Trauma Care Calculations and SDA Trauma Add-On: 
FY17 disbursement-3588 Disbursement Details June 2019

Questions:

If you have questions about the SDA “trauma add on,” please contact Kevin Niemeyer, HHSC Hospital Rate Analysis at (512) 730-7445 or kevin.niemeyer@hhsc.state.tx.us 

Please contact Indra Hernandez (indra.hernandez@dshs.texas.gov; 512-834-6669) if you have any questions about the uncompensated trauma care funding

Last updated July 3, 2019