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Bridging the Gap: How the LPPF Payment Model is Helping Texas Safety-Net Hospitals Level the Playing Field

The Texas Legislature has created the Local Provider Participation Funds (LPPF) in effort to help Texas safety-net hospitals deal with the challenges of accessing a significant percentage of their allocated federal matching funds in comparison to large well-funded hospitals. The LPPF was created in counties along the Texas-Mexico border, which allow funds eligible for match to be collected directly from area hospitals in the form of quarterly mandatory assessment payments. This innovative state payment model, in addition to private financing, has allowed Texas safety-net hospitals to establish a more equal footing in substantially increasing access to available funding.

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