Hinojosa’s bill on hospital payment programs

The text as introduced · 833 words

89R9797 SRA-F

By: Hinojosa of Hidalgo
S.B. No. 1934

A BILL TO BE ENTITLED

AN ACT

relating to the operation of certain health care provider

participation programs in this state.

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

SECTION 1. Subtitle D, Title 4, Health and Safety Code, is

amended by adding Chapter 300B to read as follows:

CHAPTER 300B. PROVISIONS GENERALLY APPLICABLE TO HEALTH CARE

PROVIDER PARTICIPATION PROGRAMS

Sec. 300B.0001. DEFINITION. In this chapter, "qualifying

local government" means:

(1) a county, municipality, or hospital district that

is participating in a health care provider participation program

authorized by another chapter of this subtitle;

(2) a health care funding district created under

Chapter 288; or

(3) a health care provider participation district

created under Chapter 300A.

Sec. 300B.0002. PERMISSIVE POWERS; LIMITATIONS. (a) A

qualifying local government is not required to exercise the powers

granted by this chapter.

(b) A qualifying local government may only exercise the

powers granted by this chapter for the health care provider

participation program that the qualifying local government

administers.

(c) Before a qualifying local government exercises a power

granted by this chapter, the qualifying local government must

comply with procedural requirements relating to the setting of the

amount of mandatory payments applicable to the health care provider

participation program administered by the qualifying local

government, including all applicable public notice and hearing

requirements.

Sec. 300B.0003. MANDATORY PAYMENTS. (a) The governing

body of a qualifying local government may require mandatory

payments to be assessed against each institutional health care

provider located in the qualifying local government. Mandatory

payments must be assessed in a manner that complies with 42 C.F.R.

Section 433.68(f)(3)(i)(A) and may not be assessed at a rate or in

an amount that would generate an amount of revenue that exceeds the

greater of:

(1) the amount of revenue the qualifying local

government is authorized to generate under the chapter of this

subtitle applicable to the health care provider participation

program administered by that qualifying local government; or

(2) the amount of revenue that, when added to the

amount of revenue generated by all other mandatory payments

assessed against all hospitals in this state, equals an amount that

does not exceed six percent of the aggregate net patient revenue

attributable to hospital services provided by all hospitals in this

state.

(b) If the governing body of a qualifying local government

requires a mandatory payment to be assessed in the manner

authorized by Subsection (a)(2) and the resulting amount of the

mandatory payment exceeds the amount of the mandatory payment

authorized by Subsection (a)(1), not later than the 20th day before

the date of a hearing regarding the amount of mandatory payments the

governing body intends to require or, if no hearing is required, not

later than the 20th day before the date the governing body requires

the mandatory payments to be assessed, the governing body shall

notify the Health and Human Services Commission of the amount of any

mandatory payments that the governing body intends to require

during the year.

(c) The Health and Human Services Commission:

(1) shall determine whether the amount of any

mandatory payments that the governing body intends to require under

Subsection (b) complies with federal law; and

(2) not later than the 19th day after the date the

commission receives notice under Subsection (b), may require the

governing body to:

(A) reduce the amount of any mandatory payments

the governing body intends to require during the year; or

(B) make other procedural changes to the

operations of the health care provider participation program for

purposes of ensuring the program complies with federal law.

Sec. 300B.0004. COMMISSION MAY REFUSE INTERGOVERNMENTAL

TRANSFERS. The Health and Human Services Commission may refuse to

accept all or any part of an intergovernmental transfer

attributable to mandatory payments from a qualifying local

government that fails to comply with a reduction or procedural

change required by the commission under Section 300B.0003(c)(2).

Sec. 300B.0005. CONSTRUCTION OF CHAPTER. (a) This chapter

may not be construed to affect the authority of a qualifying local

government to use mandatory payments in the manner authorized by

the laws applicable to the health care provider participation

program administered by the qualifying local government.

(b) This chapter does not authorize a qualifying local

government to:

(1) assess a mandatory payment that would qualify as a

bed tax or any other tax under the laws of this state; or

(2) require payment of a mandatory payment by a public

hospital, unless authorized under the chapter of this subtitle

applicable to the health care provider participation program

administered by that qualifying local government.

(c) This chapter does not authorize a statewide assessment

on hospitals in this state.

SECTION 2. 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.