Bill > HB3708

This bill introduces new regulations for nonprofit hospitals and hospital systems in Texas regarding charity care and patient debt collection. The bill requires these hospitals to include revenue from all their medical facilities when calculating net patient revenue, regardless of the facility's location within the state. It mandates that hospitals must inform and screen patients for eligibility in their charity care programs before attempting to collect debt, including providing clear information about the program on billing statements. Hospitals must now apply any applicable charity care discounts or health benefits during the initial billing, and patients retain the right to apply for charity care even if previously deemed ineligible. If a hospital incorrectly determines a patient's charity care discount, they must refund the difference or reduce the patient's debt accordingly. The bill establishes a progressive enforcement mechanism for non-compliance: first, the Health and Human Services Commission will create a corrective action plan; second, they can impose an administrative penalty of at least $250,000; and third, the attorney general may investigate and potentially revoke the hospital's tax exemptions. The new rules will take effect for fiscal years beginning on or after the act's effective date, with full implementation set for January 1, 2026.

Health and Social Services

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3708