Houston

Southeast Texas Faces Loss of IDD Group Homes as Texana Center Cites Funding Shortfalls for Shutdown

AI Assisted Icon
Published on June 25, 2025
Southeast Texas Faces Loss of IDD Group Homes as Texana Center Cites Funding Shortfalls for ShutdownSource: Google Street View

The Texana Center has announced it is ending its Home and Community-Based Services (HCS) and Texas Home Living (TxHmL) Medicaid Waiver Programs, as reported by Click2Houston. This decision, taking effect on September 19, 2025, will lead to the closure of 14 group homes that service people with intellectual and developmental disabilities (IDD) across six counties in southeast Texas.

Texana's move to shut down these essential facilities comes after grappling with substantial financial shortfalls. The organization reportedly has been losing about $3 million annually for the past decade, running group homes with grossly inadequate state reimbursements. With the current state reimbursement rate only allowing for an average of $13 per hour wage for Direct Care Professionals, it remains significantly less in comparison to the competitive retail market, offering more lucrative wages, as noted by ABC13.

These closures are set to affect approximately 50 residents, as well as others depending on Texana's day services and skills training. The families of these residents now find themselves under pressure to locate alternate providers, confronting a market with limited options and prolonged waitlists. Texana states it is diligently collaborating with state agencies and providers to facilitate an efficient transition for those affected. In an attempt to connect families with new service options, Texana has hosted provider fairs and job fairs, and is coordinating individual transition plans, as stated in a notice to the community obtained by Click2Houston.

Sarah Mohammed, whose autistic son has been residing in these group homes, expressed her distress over the news, conveying to ABC13 how challenging change can be, particularly for individuals on the autism spectrum. With a palpable concern in the air, Texana's CEO, Shena Ureste, made it clear that despite efforts to sustain operation, they are compelled to divest the group homes, potentially leasing them to alternative service providers. This strategic move could alleviate the immediate need for residents to relocate. However, it doesn't change the underlying issues driving the closures, namely the financial strains born from insufficient state support and the resultant compensation inadequacies for caregivers.

The broader implication of this development underscores a statewide challenge faced by community-based providers operating with meager funding, unable to offer competitive salaries in comparison to state-run facilities. Texana Center will persist in serving as the Local Intellectual and Developmental Disability Authority (LIDDA) within its jurisdiction, despite the termination of its residential programs. This will allow them to continue advocating for individuals with IDD and assisting them in accessing necessary services, as per the statement Texana released to Click2Houston.

Houston-Real Estate & Development