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TX HB3708
Bill
Status
3/4/2025
Primary Sponsor
Tom Oliverson
Click for details
AI Summary
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Nonprofit hospitals and hospital systems must include revenue from all Texas-based facilities and practices under common corporate governance when calculating net patient revenue for charity care requirements, excluding facilities designated as disproportionate share hospitals under Medicaid
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Nonprofit hospitals must inform and screen every patient for eligibility for the hospital's financial assistance and charity care program before sending billing statements, and cannot pursue debt collection until verifying the patient is ineligible for charity care
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Initial billing statements must reflect any applicable charity care discounts, insurance coverage, or health benefits, and all bills must include notice of the charity program with contact information and website URL
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If a hospital makes an incorrect charity care determination, it must refund or credit the patient the difference and reimburse reasonable associated costs including legal expenses; if debt was sold to a collection agency, the hospital must notify the agency of corrections
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Violations trigger escalating enforcement: first violation requires a corrective action plan published online; second violation allows administrative penalties of at least $250,000 after 90 days' notice; third violation triggers attorney general investigation and potential loss of tax exemptions under Section 311.043(b)
Legislative Description
Relating to charity care provided by certain nonprofit hospitals and hospital systems and the calculation of net patient revenue for purposes of determining the charity care provided by those entities; authorizing an administrative penalty.
Civil Remedies & Liabilities
Last Action
Committee report sent to Calendars
5/9/2025