Investing in the Health Care System for all Texans

As supplemental payments authorized under the Medicaid program, DSH and UC payments must be funded with both federal and non-federal funds. Federal funds are not available without submission of required non-federal funds. Teaching hospitals are often the taxing hospital districts that provide the non-federal share of funds to draw down the federal share of supplemental payments.

  • The non-federal share of Texas’ hospitals’ DSH payments is provided through inter-governmental transfer (IGT) of funds from public entities, typically taxing hospital districts. Five large public hospital systems, known as “transferring hospitals,” provide the required non-federal funds for both themselves and all private hospitals. All other public hospitals provide the non-federal share for themselves. Private hospitals do not provide any funds to support the non-federal share of DSH payments.
  • The non-federal share of Texas hospitals’ UC payments is provided through IGT of funds from public entities, typically taxing hospital districts, and local provider participation funds (LPPF).

Learn more about hospital financing and the vital role of hospital supplemental payments.


Click on the links below to read more about the many facets of Texas’ teaching hospitals.


Teaching Hospitals of Texas

Teaching Hospitals of Texas is the state’s principal voice and advocate for hospitals and health systems that teach, train, and mentor the next generation of physicians, nurses, and other health care professionals and are united in their commitment to supporting policies and funding to ensure healthcare access for all Texans.

View our members here.

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