FY 2016 Uncompensated Trauma Care Fund Distribution

The Texas Department of State Health Services (DSHS) Office of EMS & Trauma Systems Coordination is pleased to announce that the Uncompensated Trauma Care Fund distributions occur during the week of May 8, 2017. A hospital not receiving the Medicaid Standard Dollar Amount -- “trauma add on” will receive its uncompensated trauma care disbursement from DSHS in the next week. See Process for Hospitals receiving SDA “trauma add on” below for more information.

Background Info:

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) 2014 uncompensated trauma care charges reported by eligible hospitals on the Fiscal Year (FY) 2016 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”

Effective Fiscal Year 2016
House Bill 7 from the 84th Texas Legislative Session, Regular Session, 2015, Article II, Special Provisions Sections 32 directs Health and Human Services Commission (HHSC) to increase the amount of the Standard Dollar Amount (SDA) add-on for trauma-designated hospitals.

In an effort to maximize the availability of Federal Funds under the Title XIX Medical Assistance Program for the purpose of providing reimbursement for uncompensated trauma care at designated facilities, the Department of State Health Services (DSHS) and the Health and Human Services Commission (HHSC) shall enter 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. The total estimated annual amount to be transferred to HHSC to provide an add-on payment for trauma care is $76,500,000 in General Revenue-Dedicated Designated Trauma Facility and EMS Account No. 5111 to be used for this interagency contract.  

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 2016 Uncompensated Trauma Care Applications to calculate the formula to determine the disbursement amounts for the DSHS FY 2016 uncompensated trauma care disbursement.  HHSC provided DSHS with the amounts hospitals received from the SDA “trauma add on.” The statute 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 2016 uncompensated trauma care funding disbursement. If a hospital receives less in the FY2016 “trauma add on” payments than in the amount calculated for the DSHS FY 2016 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 2016.

Process for Hospitals that do not receive SDA “trauma add on” : A hospital not receiving the SDA “trauma add on” will receive its disbursement from DSHS in the same method (direct deposit or paper warrant) as in past years, during the week of May 8, 2017.

Funding Information: The disbursement amounts for the SDA and Non-SDA hospitals can be viewed by clicking on the Excel spreadsheets below:

Calculation spreadsheet indicating disbursement amount for each hospital (SDA and non-SDA hospitals):
FY16 HB3588 First Disbursements Summary (May 2017)

Non-SDA Hospitals (Receiving May 2017 disbursement from DSHS):
FY16 UCC Amount For Non-SDA Hospitals

Hospitals receiving SDA – “trauma add on” (Please read “Process for Hospitals receiving SDA “trauma add on” above):
FY16 UCC Amount For SDA Hospitals

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.texas.gov

 

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 June 25, 2020