HOUSTON – Dozens of families across southeast Texas are now facing tough choices after the Texana Center announced it will no longer operate its Medicaid Waiver programs serving people with intellectual and developmental disabilities (IDD).
In a notice to the community, Texana Center confirmed it will shut down all services under its Home and Community-Based Services (HCS) and Texas Home Living (TxHmL) Medicaid Waiver Programs, effective Sept. 19, 2025. The decision will result in the closure of 14 group homes, affecting both residential and day program participants.
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“We deeply regret the impact this necessary decision will have on the individuals we serve, their families, and our valued staff,” the organization said in a statement.
Why the closures are happening
Texana says it made the difficult call to voluntarily terminate its state contracts because the cost of care now exceeds the reimbursement rates provided by the Texas Health and Human Services Commission (HHSC).
Although the Texas Legislature recently increased funding for IDD services, Texana leaders say the rate still only supports an average wage of $13 an hour for Direct Care Professionals—far below a livable wage for the highly demanding work these staff members do.
“Despite our best efforts to sustain operations, we are unable to bridge the gap,” the statement reads. “The funding falls short of what is needed to retain qualified staff and maintain high-quality care.”
Who’s affected
The decision impacts about 50 residents, as well as individuals who rely on Texana for day services and skills training. Many have been with the center for years, some since transitioning out of State Supported Living Centers into community-based environments.
Families now must scramble to find new providers that can accommodate their loved ones’ complex needs—often in regions where options are limited and waitlists are long.
Transition plans underway
Texana says it’s working closely with state agencies and providers to ensure a smooth handoff of care. So far, the center has:
- Held provider fairs to help families connect with new service options in Wharton, Waller, Fort Bend, Matagorda, Colorado, and Austin counties.
- Hosted job fairs so Direct Care Professionals can stay employed—many hope to follow their clients to new providers.
- Coordinated individual transition plans to reduce stress and avoid service gaps for those with IDD.
“This is more than a professional relationship; it’s deeply personal,” the organization said. “Many of our team members consider the individuals they care for as extended family.”
Larger systemic challenges
Texana officials say this isn’t just a local issue—it reflects broader statewide challenges. While the state operates State Supported Living Centers with higher funding and wages, many community-based providers struggle to offer competitive salaries. Until that gap is closed, Texana warns more providers may be forced to make similar decisions.
Despite the program closures, Texana Center will continue serving as the Local Intellectual and Developmental Disability Authority (LIDDA) in its six-county region, advocating for individuals with IDD and helping connect them to services and support.
