Governor McMaster Outlines Health System Priorities in FY 2026–2027 Spending Plan
Governor Henry McMaster released his financial roadmap for the coming fiscal year on January 13, offering a clear signal of how the state intends to strengthen core components of its health infrastructure. For hospital leaders, the proposal reflects both continuity with past commitments and a notable expansion of investments that support access, workforce stability, and system modernization.
SCHA was particularly glad to see the Department of Health and Human Services receive its targeted funding requests, including:
- $102.6M for Medicaid to maintain current services
- $53.1M for Medicare premiums for elderly and disabled Medicaid recipients
- $47.3M to increase home and community-based services.
These items build on several years of incremental increases aimed at maintaining eligibility, supporting vulnerable populations, and easing pressure on acute care settings by expanding alternatives to institutional care.
A major highlight for the state’s academic health system is the recommendation for the Medical University of South Carolina to receive $115M (nonrecurring) for a comprehensive cancer hospital.
This investment continues a multiyear pattern of directing one-time dollars toward capital projects that expand clinical capacity and advance research capabilities.
The proposal also places significant emphasis on behavioral health—an area that has seen growing legislative attention following the consolidation of mental health and disability services agencies. The spending plan includes:
- $24.1M for information technology and cybersecurity modernization
- $21M for services to individuals with intellectual and developmental disabilities
- $20.3M for inpatient mental health services and mental health crisis stabilization teams
- $10M for the Unified Care Platform Technology of Act 3 of 2025
- $5.8M for substance addiction recovery services
- $2.5M for transportation contracts for mental health evaluations at state facilities
These recommendations reflect a continued effort to modernize systems, expand crisis response, and address longstanding service gaps.
The Department of Public Health priorities also receive substantial support, including:
- $5M recurring funds for maternal and child health home visitation program
- $1.4M recurring funds for rabies and tuberculosis services
- $976K recurring and nonrecurring for Olmstead Act implementation
This proposal will serve as the customary starting point for legislative deliberations. Budget writers have already begun subcommittee hearings, including a January 14 session of the House Ways and Means Healthcare panel chaired by Rep. Lee Hewitt.
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