Relating to required reporting of information on the ownership and control of certain health care entities; providing a civil penalty; authorizing a fee.
Impact
The implementation of HB 4408 is expected to significantly affect state laws governing health care management and operations. By requiring detailed reports on ownership and any material change transactions, the bill strengthens the state's ability to monitor potential conflicts of interest and to ensure that health care entities are operating transparently. The bill authorizes civil penalties for entities that fail to report accurately or fully, imposing fines that may range from $50,000 to $500,000 depending on the size and complexity of the entity involved. These measures aim to enhance accountability and ultimately improve patient care by increasing oversight of healthcare operations in Texas.
Summary
House Bill 4408 establishes stringent reporting requirements regarding ownership and control of various health care entities. The bill mandates that health care providers, facilities, and organizations disclose their ownership structures, control, and financial information to enhance transparency in the health care sector. This legislative effort aims to provide the Texas government with a clearer view of the operations and interactions within these entities, which include hospitals, outpatient clinics, and other healthcare services. The effective date for this reporting requirement is set for September 1, 2025, with compliance audits and inspections starting prior to that date.
Contention
While the bill is intended to increase transparency and protect consumers, it may face opposition from smaller health care providers and organizations that argue the reporting requirements could be overly burdensome. Notably, independent providers with fewer than three physicians are exempt from full reporting, aiming to alleviate the potential impact on smaller entities. However, concerns remain regarding the practical implementation of these regulations, and the potential consequences of financial penalties for non-compliance could create tension between provider groups and regulatory authorities.
Texas Constitutional Statutes Affected
Health And Safety Code
Chapter 242. Convalescent And Nursing Facilities And Related Institutions
Section: New Section
Chapter 243. Ambulatory Surgical Centers
Section: New Section
Chapter 254. Freestanding Emergency Medical Care Facilities
Section: New Section
Human Resources Code
Chapter 42. Regulation Of Certain Facilities, Homes, And Agencies That Provide Child-care Services
Identical
Relating to required reporting of information on the ownership and control of certain health care entities; providing a civil penalty; authorizing a fee.
Relating to health care transparency, including advertising, identification, and notice requirements for certain health facilities and health professionals; authorizing administrative and civil penalties.
Relating to the regulation of certain health professionals and health facilities; providing civil and administrative penalties; creating a criminal offense.
Relating to protection of persons from participation in a health care service for reasons of conscience; providing a civil remedy; authorizing disciplinary action.
Relating to protection of individuals from participation in a health care service for reasons of conscience; providing a civil remedy; authorizing disciplinary action.
Relating to restrictions on the use and disclosure of certain genetic material and genetic information; providing a civil penalty; creating a criminal offense.
Relating to required reporting of information on the ownership and control of certain health care entities; providing a civil penalty; authorizing a fee.
Authorizes the secretary of the Department of Revenue's authority to add back certain deductible expenses of corporations subject to Louisiana income or franchise tax which have either corporate gross revenues everywhere of $8 billion or $8 million of assets everywhere in order to calculate the corporation's income. (gov sig) (OR INCREASE GF RV See Note)