H.B. No. 3505 introduces Chapter 300C to the Health and Safety Code, establishing health care provider participation districts that local governments can create to enhance financial support for specific hospitals. The bill allows these districts to implement a health care provider participation program funded by mandatory payments from hospitals, which will contribute to the nonfederal share of a Medicaid supplemental payment program. It outlines the governance structure, operational guidelines, and the process for potential dissolution of the districts, ensuring transparency through mandated public hearings regarding the use of mandatory payments.

The legislation also establishes a Local Provider Participation Fund (LPPF) for the districts, requiring that all mandatory payments be deposited into this fund for authorized uses, such as Medicaid funding and administrative expenses. It sets a cap on mandatory payments at six percent of the aggregate net patient revenue from hospital services and clarifies that these payments are not classified as taxes under the Texas Constitution. Additionally, the bill amends eligibility criteria for board directors of health care provider participation districts and allows for the delay of implementation if federal waivers are needed. The Act will take effect immediately with a two-thirds legislative vote or on September 1, 2025, if not passed.

Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()
Senate Committee Report: ()
Enrolled: ()