Bill > SB457

This bill addresses the regulation of nursing facilities in Texas by introducing several key provisions. First, it establishes a process for ensuring uninterrupted Medicaid reimbursement during nursing facility ownership changes, requiring new owners to meet specific conditions such as accepting the previous owner's Medicaid provider agreement and entering into a successor liability agreement. The bill also introduces a patient care expense ratio requirement, mandating that at least 80 percent of Medicaid reimbursement funds attributed to patient care expenses must be spent on reasonable and necessary patient care costs. This includes expenses for direct care staff (like nurses and aides), medical supplies, diagnostic services, and nutrition services. Additionally, the bill requires nursing facility license applications to disclose detailed ownership information, including the names and exact ownership percentages of individuals with at least 5% ownership interest in the facility or its property. Nursing facilities will be required to notify authorities of any changes to their ownership application information. The bill includes provisions for potential recoupment of funds if facilities do not comply with the expense ratio, though facilities with high quality ratings or those facing specific challenges may be exempt. The Health and Human Services Commission is also required to submit a report by November 2027 assessing the impact of these new requirements on Medicaid nursing facility care.

Health and Social Services

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB457