S.B. No. 1443 introduces Chapter 300C to the Health and Safety Code, which establishes a framework for health care provider participation districts created by local governments. This chapter allows these districts to implement a health care provider participation program aimed at providing additional compensation to specific hospitals by collecting mandatory payments from them. The bill outlines the governance structure, operational guidelines, and financial management of these districts, including the establishment of a Local Provider Participation Fund (LPPF) to manage the collected payments. The LPPF is designated for specific uses, such as funding intergovernmental transfers for Medicaid payments, and mandates that the funds be secured according to public fund regulations.

The bill also includes provisions for the assessment of annual mandatory payments based on the net patient revenue of healthcare providers, ensuring that these payments are proportionate and capped at six percent of the aggregate net patient revenue. It allows for the continuation of directors and board officers from Chapter 300A to serve under Chapter 300C, maintaining their eligibility for reappointment unless disqualified. Furthermore, the bill stipulates that implementation may be delayed if a federal waiver is required, and it will take effect immediately upon a two-thirds legislative vote or on September 1, 2025, if not passed.

Statutes affected:
Introduced: ()