What you need to know
If approved, the increase is expected to tack on an additional $64 for the average homeowner tax bill. The average Travis County homeowner with a property valued around $515,213 can expect to pay around $608 in property taxes to Central Health.
A public hearing is scheduled at Travis County Commissioners Court on Sept. 3, and commissioners will formally vote on the Central Health tax rate and budget Sept. 16.
The big picture
Dubbed the “year of access” by Central Health officials, the additional funding would expand and speed up health care options for low-income residents.
“Access to care is not just a goal—it’s a lifeline,” Central Health President and CEO Dr. Pat Lee said. “For many in our community, timely and equitable care can make all the difference.”
At a July 31 community meeting, Central Health leaders outlined “patient-first” priorities for the coming year:
- Reduce appointment wait times to under two weeks
- Curb avoidable hospital readmissions and emergency room visits
- Expand health insurance coverage for more patients
- Closing gaps in care
This year’s proposed budget reflects a more unified approach. For the first time, Central Health is collaborating closely with its partners—CommUnityCare Health Centers and Sendero Health Plans—on a joint budgeting process.
The district has increasingly shifted toward delivering more direct clinical services, especially since a 2019 change in state law. That shift was formalized in its seven-year, $700 million Healthcare Equity Plan launched in 2022.
“We saw a whole lot of gaps,” said Ann Kitchen, Central Health board of managers chair. “... We now have the ability to directly provide services to cover some of those gaps where other [organizations] in the community are not doing so.”
CommUnityCare largely handles primary care services, while Central Health has focused on expanding specialty care. The proposed budget includes notable increases in funding for both primary and specialty services.
Central Health officials also signaled plans to potentially expand the Health Alliance for Austin Musicians, or HAAM, coverage options to include restaurant and hospitality workers who lack employer-provided health coverage.
A closer look
Last year's budget also saw an increase of the Central Health property tax rate of 6.5%, with a similar estimated dollar amount increase.
Approximately 90% of the hospital district’s funding comes from property taxes and, in order to expand services, the tax rate needs to increase, according to Central Health officials.
According to Central Health documents, the organization has increased its low-income health care coverage six-fold in the last three years.
“The demand is only going to increase,” Ted Burton, Central Health chief communication officer, told community members July 31. “We know that there's uncertainty at the federal level and the state level, but people still need care. So regardless of what happens in Washington or what happens at the Capitol, we have to be there for our patients.”
The proposed budget includes a $98 million funding allocation toward CommUnityCare clinical services—the largest investment to date—reflecting the hospital district’s collective approach to the delivery of services.
“We are not willing to see clinic services closed or front line staff laid off. Instead, we are strengthening that backbone, expanding access, reducing wait times and ensuring more people can get the care they need when they need it,” Lee said.
Both Central Health and CommUnitCare leaders are bracing for impacts related to the One Big Beautiful Bill Act signed into law July 4. The bill includes cuts to premium tax credits, affecting many with health insurance through the Affordable Care Act or Medicaid.
Under the new regulations, premium tax credits for affordable health care plans are set to expire at the end of the year.
Paul Scott, CEO for the Health Alliance for Austin Musicians, told commissioners a recent study by the Kaiser Family Foundation predicts that a family of four currently paying around $800 a month will soon see that bill increase to around $3,200 a month.
"No one is going to be able to afford [it],” Scott said.
With these expected increases, Central Health is gearing up to provide coverage for more patients.
“Coverage is one of the biggest predictors of access and dignity in health care,” said Tara Trowers, chief strategy officer at CommUnityCare. “If you don’t believe you can afford a visit, you’re much more likely to delay [care].”
If people lose access to health coverage—whether because Affordable Care Act premium subsidies expire or other or bureaucratic hurdles—they’re more likely to get sicker, suffer, end up in the hospital or even die prematurely, Lee said.
Central Health is “proactively” building up a local safety net program to help fill that gap.
“That provides added pressure to local taxpayers, but that pressure is either going to come up front in the form of coverage and access to primary care, or going to come downstream and at a larger [cost] when folks hit the hospitals,” Lee said.
Additionally, recent years have seen “substantial” changes to the 340B Drug Pricing Program, Central Health staff members told commissioners.
The 340B Drug Pricing Program is a federal program that allows certain hospitals and clinics to purchase outpatient drugs at a discounted price from pharmaceutical manufacturers. The cost of drugs is increasing. Because of this, the difference between what it costs to provide the drugs and the money the health center gets paid is getting smaller, Central Health staff members said.
Recently implemented tariffs are also expected to increase the costs of pharmaceutical drugs even higher.
Quote of note
“When the federal government is cutting access to health care, we are increasing it,” Travis County Commissioner Brigid Shea said.
Items worth mentioning
During last year’s budget cycle, county officials impressed upon Central Health leadership the need for greater transparency, calling out the annual $35 million financial arrangement with Dell Medical School at The University of Texas.
A third-party performance audit of Central Health conducted in late 2024 highlighted issues with insufficient documentation and inconsistent reporting methods between the multiagency health care system.
Since 2014, Dell Med has received $35 million of taxpayer dollars annually paid by Central Health with the intent to support increased capacity for greater care of the area’s poorest residents.
The two health care providers have collaborated closely in recent months to clarify how the funding is being utilized.
Dell Med primarily uses the funds to support staff salaries, which is one of the authorized uses under the original 2014 voter-approved agreement.
Much of the concern arises from the lack of concrete metrics on the number of patients served. However, Dell Med physicians provide care not only at the relatively small UT Health Clinic but also at various clinics across the metro area, according to a spokesperson for Dell Med.
When these doctors deliver care at locations outside the UT system, Dell Med does not bill for those services and, therefore, cannot track them. However, based on provider surveys, 1.5 million hours of clinical care has been provided by Dell Med physicians locally.
Additionally, the school’s residency program has graduated 650 graduates, with 43% of those graduates practicing in Central Texas.
Central Health has individually recruited 19 specialty physicians since 2023.
Moves toward greater transparency continue to be bolstered with the multiagency data sharing platform, Watershed Health.
The program aims to coordinate patient care across traditionally siloed public and private entities, both clinical and nonclinical providers, according to a May 22 news release from Central Health.
The initiative started with Dell Medical and Central Health. Partners now include:
- Austin Public Health
- Integral Care
- Travis County Sheriff’s Office
- Major health systems and health plans
