Tex. Government Code § 526.0301: STRATEGIC PLAN FOR RURAL HOSPITAL SERVICES; REPORT.

(a) The commission shall develop and implement a strategic plan to ensure that the citizens in this state residing in rural areas have access to hospital services.

(b) The strategic plan must include:

(1) a proposal for using at least one of the following methods to ensure access to hospital services in the rural areas of this state:

(A) an enhanced cost reimbursement methodology for the payment of rural hospitals participating in the Medicaid managed care program in conjunction with a supplemental payment program for rural hospitals to cover costs incurred in providing services to recipients;

(B) a hospital rate enhancement program applicable only to rural hospitals;

(C) a reduction of punitive actions under Medicaid that require reimbursement for Medicaid payments made to a rural hospital provider, a reduction of the frequency of payment reductions under Medicaid made to rural hospitals, and an enhancement of payments made under merit-based programs or similar programs for rural hospitals;

(D) a reduction of state regulatory-related costs related to the commission's review of rural hospitals; or

(E) in accordance with rules the Centers for Medicare and Medicaid Services adopts, the establishment of a minimum fee schedule that applies to payments made to rural hospitals by Medicaid managed care organizations;

(2) target dates for achieving goals related to the proposal described by Subdivision (1); and

(3) a rural hospital financial needs assessment and financial vulnerability index quantifying the likelihood that a rural hospital, during the next two-year period, will be able to:

(A) maintain the types of patient services the hospital currently offers at the same level of service;

(B) meet the hospital's current financial obligations; and

(C) remain operational.

(c) Not later than December 1 of each even-numbered year, the State Office of Rural Hospital Finance established under Section 526.0304 shall submit a report regarding the development and implementation of the strategic plan to:

(1) the legislature;

(2) the governor; and

(3) the Legislative Budget Board.

Added by Acts 2023, 88th Leg., R.S., Ch. 769 (H.B. 4611), Sec. 1.01, eff. April 1, 2025.

Amended by:

Acts 2025, 89th Leg., R.S., Ch. 707 (H.B. 18), Sec. 2, eff. June 20, 2025.