S.B. No. 457 seeks to strengthen the regulation of nursing facilities in Texas by introducing new provisions related to licensing, Medicaid participation, and reimbursement. A key addition to the Government Code is Section 532.0159, which ensures that nursing facilities will continue to receive uninterrupted Medicaid reimbursement during a change in ownership application, provided the new owner agrees to the previous owner's Medicaid provider agreement and enters into a successor liability agreement. Furthermore, Section 540.0283 mandates that provider agreements between Medicaid managed care organizations and nursing facilities must comply with a newly established patient care expense ratio, ensuring that a significant portion of Medicaid funds is directed towards patient care.

The bill also imposes new ownership disclosure requirements, necessitating detailed information about individuals with significant ownership interests in nursing facilities. It establishes an annual patient care expense ratio that facilities must follow to enhance the quality of care for Medicaid recipients. The Health and Human Services Commission is responsible for implementing these changes and must prepare a report on the impact of the new patient care expense ratio by November 1, 2027. Additionally, the bill outlines a procedure for state agencies to request federal waivers or authorizations when necessary, delaying implementation until such approvals are granted. The provisions of this act are set to take effect on September 1, 2025, following strong legislative support in both the Senate and House.

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)