S.B. No. 457 is a legislative act designed to regulate nursing facilities in Texas, particularly concerning licensing requirements and Medicaid participation. A key addition to the Government Code is Section 532.0159, which ensures that nursing facilities providing Medicaid services will continue to receive uninterrupted Medicaid reimbursement during a change in ownership application, contingent upon accepting the previous owner's Medicaid provider agreement and meeting licensing requirements. The bill also introduces a requirement for nursing facility provider agreements to adhere to a patient care expense ratio, ensuring that a significant portion of Medicaid reimbursement is directed towards patient care expenses.

Furthermore, the bill amends existing laws to improve transparency regarding ownership interests in nursing facilities and mandates notification of any changes in ownership interest application information. It establishes an annual patient care expense ratio that nursing facilities must comply with to receive reimbursement under the medical assistance program. The act is set to take effect on September 1, 2025, and includes a provision for the Health and Human Services Commission to report on the impact of the new patient care expense ratio by November 1, 2027. Additionally, the bill outlines procedures for state agencies to follow when federal waivers or authorizations are necessary, ensuring compliance with federal regulations before implementing new initiatives.

Statutes affected:
Introduced: Health and Safety Code 242.032, Human Resources Code 32.028 (Human Resources Code 32, Health and Safety Code 242)
Senate Committee Report: Government Code 540.0752, Health and Safety Code 242.032, Human Resources Code 32.028 (Government Code 540, Human Resources Code 32, Health and Safety Code 242)
Engrossed: Government Code 540.0752, Health and Safety Code 242.032, Human Resources Code 32.028 (Government Code 540, Human Resources Code 32, Health and Safety Code 242)
House Committee Report: Government Code 540.0752, Health and Safety Code 242.032, Human Resources Code 32.028 (Government Code 540, Human Resources Code 32, Health and Safety Code 242)
Enrolled: Government Code 540.0752, Health and Safety Code 242.032, Human Resources Code 32.028 (Government Code 540, Human Resources Code 32, Health and Safety Code 242)