2025S0205-1 03/10/25 By: Hancock S.B. No. 2578 A BILL TO BE ENTITLED AN ACT 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 and Safety Code; (B) the new provider assumes the prior provider's contract terms and conditions that were in effect as of the time of ownership transfer; and (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), Health and Safety Code. 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 this section: (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 Section 242.0336(c); and (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 facilities. SECTION 3. This Act takes effect September 1, 2025.