AUSTIN (KAMR/KCIT) — Officials with the office of Governor Greg Abbott announced that the Texas Health and Human Services Commission (HHSC) has secured $984 million in annual funding for state hospitals.

According to the release, the funding aims to support private hospitals throughout Texas, and additional funds aim to support teaching hospitals that treat patients with complex conditions, provide intensive care, and have sophisticated technology.

“Texans across the state will now have greater access to the healthcare services they need with this additional annual funding,” said Governor Abbott. “I applaud the Texas Health and Human Services Commission for their tireless work in securing approval from the Centers for Medicare and Medicaid Services for Texas’ plan to fund hundreds of private hospitals, providing crucial care to millions of Texans. Working together, we will ensure Texans in rural and border communities have the healthcare access they need and deserve for generations to come.”

Officials said the additional funding plans to reach hospitals through Medicaid Graduate Medical Education supplemental payments as well as the Hospital Augmented Reimbursement Program.

GME is estimated to have $109 million in payments that aim to support teaching hospitals, “that operate state-approved medical residency training programs.” HARP is estimated to have $875 million in payments for, “private hospitals that provide inpatient and outpatient services for Texas Medicaid clients.”

“We value our partnerships with these safety net providers across the state and know this funding will have a positive impact in Texas communities,” said HHSC Executive Commissioner Cecile Young.

Funding was secured after the HHSC submitted requests to the Centers for Medicare and Medicaid Services (CMS) with a goal to amend Texas’ Medicaid plan and allow payments to privately owned or operated hospitals according to the release.