bill making hospitals screen for charity care before billing

The text as introduced · 622 words

By: Oliverson
H.B. No. 3708

A BILL TO BE ENTITLED

AN ACT

relating to charity care provided by certain health care

facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter D, Chapter 311, Health and Safety

Code, is amended by adding Section 311.0454 to read as follows:

Sec. 311.0454. CHARITY CARE SCREENING. (a) Using the

process prescribed by the commission under this section, a

non-disproportionate share hospital shall screen all patients for

eligibility of the hospital's financial assistance program and

charity care policy. A hospital cannot pursue debt collections of

any patient account until the hospital verifies the patient is not

eligible for the hospital's financial assistance program and

charity care policy.

(b) The executive commissioner of the Health and Human

Services Commission shall adopt by rule the process for screening a

patient for eligibility for charity care under Subsection (a).

(c) The rules and process adopted under Subsection (b) must

require a hospital:

(1) before sending a bill to the patient, to conduct

the screening and apply any charity care discounts or full cost

coverage for which the patient qualifies for; and

(2) include on each billing statement notice of:

(A) the availability of financial assistance;

(B) the contact information for the office or

department of the hospital that can provide information about

obtaining financial assistance; and

(C) the direct Internet address for the financial

assistance policy.

(d) A patient may apply for charity care if the patient was

screened for eligibility and was found not to be eligible or the

patient disagrees with the amount of the charity care discount.

(e) If a hospital makes an incorrect determination under

Subsection (a) based on the information provided by the patient at

the time of the determination, the hospital shall:

(1) refund the amount of charity care for which the

patient qualified; and

(2) reimburse any other associated reasonable costs,

such as legal expenses and fees, incurred by the patient in securing

charity care.

(f) If the hospital sold debt based on an incorrect

determination to a collection agency or authorized a collection

agency to collect the debt on behalf of the hospital, the hospital

shall notify the collection agency that the debt is invalid.

(g) If the commission determines that a hospital fails to

comply with this section:

(1) upon the first violation, the commission shall

institute a corrective action plan for the hospital and post it on

the commission's internet website;

(2) upon the second violation:

(A) the commission shall apply an administrative

penalty of not less than $250,000; and

(B) apply a probationary of period of not more

than 90 days, after which the commission shall confirm that the

hospital is in compliance with this section; and

(3) upon the third violation, the commission shall

inform the attorney general of the nature of the non-compliance,

who shall bring an action in the name of this state to revoke the

hospital's state tax exemptions.

SECTION 2. 311.045, Health and Safety Code, is amended by

adding Subsection (g) to read as follows:

(g) When calculating net patient revenue under this

section, a hospital or hospital system shall include all facilities

and practices offering medical services located in this state under

the common governance of a single corporate parent, regardless of

their radius from that corporate parent.

(h) All facilities described by Subsection (g) must comply

with charity care screening requirements found in by Section

311.0454.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.