H.B. No. 3708 aims to enhance the charity care provided by nonprofit hospitals and hospital systems in Texas by amending the Health and Safety Code. The bill introduces a new subsection that mandates nonprofit hospitals to include the revenue from all their facilities and practices in Texas when calculating net patient revenue for charity care purposes, with the exception of those designated as disproportionate share hospitals under the state Medicaid program. Additionally, a new section is added to require these hospitals to inform patients about their charity programs and screen them for eligibility. Hospitals are prohibited from pursuing debt collection until they verify that a patient is ineligible for charity care.

The bill also establishes a framework for penalties if hospitals fail to comply with the new requirements. The Health and Human Services Commission is tasked with creating rules for the screening process, and hospitals must apply any charity care discounts on initial billing statements. If a hospital incorrectly determines a patient's charity care discount, they are required to refund the difference or adjust the patient's account accordingly. The bill outlines a tiered penalty system for non-compliance, starting with a corrective action plan and escalating to potential administrative penalties and legal action by the attorney general for repeated violations. The provisions of this act will take effect for fiscal years beginning on or after the effective date, with specific rules to be adopted by December 1, 2025.

Statutes affected:
Introduced: ()
House Committee Report: Health and Safety Code 311.045 (Health and Safety Code 311)