SB 2578

relating to licensure and contracting for the delivery of medical
assistance by nursing facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 32.021, Human Resources Code, is amended
by adding Subsection (t) to read as follows:
(t)  The commission shall ensure that contracts for the
delivery of medical assistance to a nursing facility:
(1)  are awarded on terms and conditions that are no
more stringent than the federal requirements governing Medicare
certification and enrollment of skilled nursing facilities;
(2)  allow uninterrupted Medicaid payments if:
(A)  the new provider meets the requirements of
this chapter and licensure requirements under Chapter 242, Health
(B)  the new provider assumes the prior provider's
contract terms and conditions that were in effect as of the time of
(C)  the new provider enters into a successor
liability agreement with the commission and the prior provider
indicating the new provider agrees to pay the commission for any
liabilities that exist or may be found to exist during the period of
the prior provider's contract with the commission; and
(3)  satisfy the requirements of Section 242.033(h),
SECTION 2.  Section 242.033, Health and Safety Code, is
amended by adding Subsection (h) to read as follows:
(h)  The department shall ensure that rules adopted under
(1)  provide for a single application for licensure and
contracting for the delivery of medical assistance consistent with
Section 532.0052, Government Code;
(2)  require the department to issue a contract for the
delivery of medical assistance within 30 days after the date of
issuance of a temporary change of ownership license as provided by
(3)  ensure that vendor payments are made to nursing
facilities within 30 days of the effective date of a contract for
delivery of medical assistance, including requiring any managed
care organization contracts with the commission to provide for
expedited credentialing of nursing facilities consistent with the
commission's rules within 30 days, and that managed care
organizations' contracts with nursing facilities be effective on
the date of the commission's Medicaid contract with such nursing
SECTION 3.  This Act takes effect September 1, 2025.