Senate Bill 2655, authorizing Burnet County to establish a Local Provider Participation Fund to help fund supplemental Medicaid payments for hospitals, was laid out in the Committee on Local Government and received public testimony in support.

Why it matters: Supporters said the LPPF would create a sustainable, locally administered funding mechanism that uses administrative fees from private hospitals as the non‑federal share to unlock federal matching funds. Proponents say the tool can help rural hospitals cover operating costs, invest in equipment and retain staff without raising local taxes or expanding state Medicaid eligibility.

Testimony: Karen Litterer, administrator and chief nursing officer for Ascension Seton Highland Lakes (recorded in the transcript as "Karen Littner"), described the facility as a 25‑bed critical access hospital serving a rural population and employing roughly 250 staff and 22 physicians. She testified the hospital provides emergency, intensive care, surgical and swing‑bed services, and she asked the committee to support SB 2655 so the hospital could continue meeting community needs.

Committee action: The committee substitute to SB 2655 was presented and public testimony closed after the hospital's witness. The committee left the bill pending subject to call by the chair.