AUSTIN, TEXAS – The Children’s Hospital Association of Texas (CHAT) released its 2025 legislative priorities during last week’s Children’s Hospital Day at the Texas Capitol. CHAT spoke with legislative staff and members about the lifesaving care that children’s hospitals in Texas provide to kids in 97% of counties.
The association’s top priorities for the 2025 session include ensuring Medicaid rates are stable, predictable and adequate for children’s hospitals and supporting children’s access to physical and mental health care. To accomplish these goals, CHAT asks that the Legislature:
- Support Medicaid inpatient rates that more closely reflect the cost of care.
- Medicaid inpatient base rates, called Standard Dollar Amounts (SDAs), have not been updated in over a decade, while healthcare costs have risen significantly. It is vital that SDAs more closely reflect the cost of care, especially for children’s hospitals, where Medicaid covers 60% of all inpatient days, on average.
- CHAT requests that the Legislature require HHSC to 1) develop a plan, with industry input, to address and rebase hospital rates on a regular schedule and 2) not modify the children’s hospital inpatient base rate without the appropriate state investment.
- Maintain the current children’s hospital definition.
- Texas Medicaid has set high standards that hospitals must meet to receive the children’s hospital reimbursement rate, which addresses the higher cost structure that children’s hospitals face. CHAT requests that the Legislature maintain the current definition of a children’s hospital for Medicaid reimbursement.
- Support outpatient care closer to home.
- Facility fees are an essential component of paying for the care children receive and help keep lifesaving care available outside of the hospital. CHAT requests that the Legislature not prohibit facility fees for outpatient services, as this will limit access to care for children and potentially increase costs as more children seek care at the hospital.
- Invest in the mental healthcare continuum by adding Intensive Outpatient and Partial Hospitalization Programs as Medicaid-covered benefits.
- These services help patients transition out of a residential or inpatient hospital setting or prevent a hospital stay altogether. They are often more appropriate and cost-effective mental health treatments for children.
- Invest in the pediatric workforce.
- Specialized care for children requires ongoing training and investment in the healthcare workforce. Investing in recruitment and retention programs for pediatric healthcare providers and specialists will increase our workforce and access to care.
“Put simply, children’s hospitals offer hope to our most vulnerable population – our children – when no one else can,” said Stacy Wilson, president of CHAT. “We are working tirelessly this session to make sure our children’s hospitals receive the support they need to continue to provide outstanding care to any child who needs it.”
Photos from the event are accessible here. Learn more about CHAT’s advocacy efforts here.
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About the Children’s Hospital Association of Texas
The Children’s Hospital Association of Texas (CHAT) is a nonprofit association with the mission to advance children’s health and well-being by advocating for policies and funding that promote children’s access to high-quality, comprehensive health care. Learn more about CHAT at chatexas.com or follow CHAT on Twitter at https://twitter.com/ChildHospAssnTX.