CORRECTION: A previous version of this story incorrectly stated that Parkland Health's budget could be slashed in half due to federal funding cuts. In actuality, local, state and federal funding declined by roughly $55 million between FY2025 and FY2026. The previous version of this story compared the capital budget for FY2024 and FY2025 rather than the operating budget. The actual operating expenses went from about $3 billion in FY2025 to an estimated $3.1 billion in FY2026, with an estimated $3 billion in total operating revenue.
The leader of Dallas' safety net hospital system gave Dallas County commissioners an update on Parkland Health's budget Tuesday.
Parkland's total operating expenses are projected to be $3.1 billion in Fiscal Year 2026, up from about $3 billion in Fiscal Year 2025, according to a presentation from Parkland CEO Fred Cerise. That's against a projected $3 billion in expected revenue.
The hospital system is set to see some cuts come from reductions in Medicaid Disproportionate Share Hospital payments, which in the past gave money to qualifying hospitals serving large numbers of Medicaid and uninsured individuals.
Cerise said Congress delayed reducing those funds for years but finally made the cuts in the "One Big Beautiful Bill Act" that passed this year.
“That’s a significant budget item for us,” Cerise said. “And so that's probably the most significant variable that we are planning for a reduction this year."
Recent tariffs have also increased supply costs by 6%, according to Cerise.
The proposed budget plan for next fiscal year, so far, did not provide new funding solutions, but Cerise said the hospital was looking into other resources.
“We’re continuing our conversations with the state on this to see where other sources of supplemental funding could supplant some of the things that are being lost,” Cerise said.
With so many of Parkland's patients uninsured, Cerise said the hospital is looking into moving some patients onto an Affordable Care Act plan, but is still uncertain about how those plans may also be impacted by funding cuts.
A final presentation on the proposed budget is expected to be presented to the commissioner’s court Sept. 2.
Penelope Rivera is KERA’s breaking news reporter. Got a tip? Email Penelope Rivera at privera@kera.org.
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