S.B. No. 1443 introduces Chapter 300C to the Health and Safety Code, establishing provisions for health care provider participation districts created by local governments. This chapter allows these districts to administer a health care provider participation program that provides additional compensation to specific hospitals through mandatory payments collected from them. The funds generated will support the nonfederal share of a Medicaid supplemental payment program and other authorized purposes. The bill outlines the governance structure of the districts, including the appointment of a board of directors, their qualifications, and the powers and duties of the board, while ensuring that the districts can operate under the new provisions if all participating local governments adopt concurrent orders.

The legislation also establishes a Local Provider Participation Fund (LPPF) for the districts, mandating that all mandatory payments be deposited into this fund for specific authorized uses, including intergovernmental transfers for Medicaid payments. It sets guidelines for assessing and collecting these payments based on the net patient revenue of health care providers, capping them at six percent of the aggregate net patient revenue. Furthermore, the bill allows current directors and board officers from Chapter 300A to continue serving under Chapter 300C and requires state agencies to seek federal waivers if necessary for implementation. The Act will take effect immediately upon a two-thirds legislative vote or on September 1, 2025, if not passed.

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