Tom Green County commissioners voted Tuesday to raise the rate hospitals must pay into a special healthcare fund that helps the county draw down additional federal money for local hospital services.
The program, known as the Local Provider Participation Fund (LPPF), allows counties to collect payments from private hospitals—like those operated by Shannon Medical Center—and use that money to qualify for matching Medicaid funds from the state and federal government. No property tax dollars or public funds are involved.
“The interesting thing about this is that it is called a tax, but it is a tax that a hospital would actually like you to impose on,” said Dianna Spieker, Tom Green County Treasurer. “No property tax and no constituent tax dollars are included in this—it is all funded currently by the Shannon hospital affiliates.”
Commissioners approved raising the payment rate to 6 percent, the highest allowed by federal law. The last increase took place in 2021. Spieker told the court that this new rate could bring in about $8 million in additional funds for the 2026 fiscal year.
She explained that Texas did not expand Medicaid under the Affordable Care Act, which gives counties like Tom Green a limited chance to increase their rate before federal rules freeze it in place. “There is a small window of opportunity… because once a bill is passed by the federal government, you cannot raise it anymore,” she said.
According to the Texas Health and Safety Code, the LPPF can only be used for specific healthcare-related costs, including Medicaid payments, indigent care, and administrative expenses. The motion to raise the rate for the 2025 fiscal year passed unanimously.
In Other News
Commissioners also approved a change order from Justice Construction totaling $33,949.55 for ongoing work at the DEAAG fire station dormitory project, which supports Goodfellow Air Force Base. The changes include adding fiber optic and copper cabling, interior lighting upgrades, drainage improvements, and the purchase of washer and dryer units.
In addition to the added work, the commissioners extended the contractor’s timeline to July 29, 2025, for previously approved portions and to Sept. 1, 2025, for the full project. The extensions align with the terms of the grant funding the project and are covered by the county’s share of the grant package.
The court also approved the transfer of obsolete cell phones from the Sheriff’s Office to the Crisis Intervention Unit (CIU). The phones, while no longer connected to a service provider, can still be used to call 911. They will be distributed to victims of domestic violence and others in emergency situations.
Finally, officials announced that the County Clerk’s Office will be closed from noon to 4:30 p.m. on Wednesday, July 3.
