Trump administration withholding billions in Medicaid funding for Texas hospitals

DALLAS - Texas hospitals began losing millions of dollars a day on Monday after the Trump administration began withholding billions in Medicaid funding.

What we know:

The Trump administration is withholding billions of dollars in Medicaid funding for Texas hospitals. The fight centers on questions over how Texas taxes its hospitals to generate the state's share needed to receive federal matching funds.

The Texas Health and Human Services Commissioner is working to reach an agreement with the Centers for Medicare and Medicaid Services (CMS) for funding.

However, Texas hospitals began losing an estimated $27 million a day on Monday with the federal withholdings.

Why you should care:

As of right now, there isn't an immediate disruption for Medicaid patients, but the longer funds are withheld, the impacts could trickle down to patients, employees, and services.

"I can tell you the safety net hospital and children's hospitals will be hit very hard," says Stephen Love, the President & CEO of the Dallas-Fort Worth Hospital Council.

Big picture view:

Texas Gov. Greg Abbott has defended the state's hospital tax system.

A spokesperson for Abbott told FOX 4 that, "Texas' financing fully complies with federal law, and Texas health care providers should receive the funding they are due."

Local perspective:

Local DFW nonprofits say not to expect Medicaid to end or that patients will lose coverage because of the withholdings.

"It doesn't seem to me there's going to be any disruption in service right now. Now, what does that mean if this keeps going and prolonging and prolonging? We don't know," Wes Keyes, the CEO of Brother Bill's Helping Hand, tells FOX 4's Amelia Jones.

Brother Bill's Helping Hand is a Dallas nonprofit that provides food, healthcare and educational services to families in need.

Keyes pointed out that nonprofits will see a greater need if government-funded programs are impacted.

"I really hope that this gets resolved because if it does trickle down to patient care, or even the people who are employed by the hospital, this could be devastating," Keyes said.

What we don't know:

We don't know when the Trump administration will stop withholding the funds to Texas hospitals.

FOX 4 reached out to Texas Health and Human Services, but did not hear back by our deadline tonight.