TexasSB 45789th Legislature Regular SessionSenate

Relating to the regulation of certain nursing facilities, including licensing requirements and Medicaid participation and reimbursement requirements.

Sponsored By: Giovanni Capriglione, James Frank, Lois Kolkhorst (Republican), Suleman Lalani

Signed by Governor

Health Care ProvidersHuman Services--Medical AssistanceNursing HomesMANAGED CAREMEDICAIDHEALTH & HUMAN SERVICES COMMISSION

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Nursing homes face patient-care spending rules

Beginning September 1, 2025, non-state-owned nursing facilities must spend at least 80% of Medicaid reimbursement tied to patient care on qualifying care costs each year. Qualifying costs include specified staff pay and benefits, care supplies, ancillary services, and food and nutrition services. Unlisted administrative or operating costs and fixed capital costs do not count. Provider agreements must require compliance, but meeting the ratio cannot be a condition of Medicaid participation. Texas may take back some or all reimbursement for violations, within federal limits. Recovery is barred for facilities with at least four stars in three or more specified federal rating categories. It is also barred when average daily occupancy is 75% or less and qualifying care spending reaches 70%, or when facilities incur expenses related to a governor-declared disaster. The law adds managed-care contract requirements: new and renewed contracts must comply, while conflicting preexisting contract terms prevail. Texas must seek changes to existing contracts. By November 1, 2027, Texas must report on the ratio's effects on Medicaid care costs and quality during the preceding state fiscal biennium. The law also repeals three related Medicaid reimbursement subsections; the supplied information does not explain their prior requirements. Implementation can be delayed while needed federal approval is pending.

Nursing homes must disclose ownership details

Beginning September 1, 2025, nursing facility license applications must identify people with direct or indirect ownership interests of 5% or more. This covers interests in the facility, its parent or subsidiary, and the property where it operates. Applications must describe exact ownership interests and include relevant owners, common owners, tenants, and sublessees. License holders must report changes to that information in the form and manner Texas requires.

Nursing home payments continue during sales

Beginning September 1, 2025, Texas must keep Medicaid payments flowing while a nursing facility's ownership-change application is pending. The new owner must accept the prior Medicaid provider agreement and meet applicable legal and licensing requirements. The owner must also assume the prior services contract when that contract requires it and the parties agree. A state-approved agreement must require payment of state-identified outstanding contract liabilities, potentially including the former owner's debts regardless of service or claim dates. The new owner must also meet any additional state requirements. Supplemental and directed payment programs are excluded, and implementation can be delayed while needed federal approval is pending.

Sponsors & Cosponsors

Sponsors

  • Giovanni Capriglione

    House

  • James Frank

    House

  • Lois Kolkhorst

    Republican • Senate

  • Suleman Lalani

    House

Cosponsors

  • Carol Alvarado

    Democratic • Senate

  • Donna Campbell

    Republican • Senate

  • José Menéndez

    Democratic • Senate

  • Charles Schwertner

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 610 • No: 93

Senate vote • 5/31/2025

Record vote

Yes: 0 • No: 0

House vote • 5/31/2025

Record vote

Yes: 111 • No: 19

House vote • 5/28/2025

Record vote

Yes: 104 • No: 34

House vote • 5/27/2025

Record vote

Yes: 116 • No: 24

House vote • 5/27/2025

Record vote

Yes: 124 • No: 15

House vote • 5/27/2025

Record vote

Yes: 140 • No: 0

Senate vote • 5/1/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/1/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Human Services

Yes: 6 • No: 1

Senate vote • Unknown

Committee vote: Health & Human Services

Yes: 9 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House
  2. Signed by the Governor

    6/20/2025House
  3. Sent to the Governor

    6/2/2025House
  4. Signed in the House

    6/2/2025House
  5. Signed in the Senate

    6/1/2025Senate
  6. Reported enrolled

    6/1/2025Senate
  7. Senate adopts conf. comm. report-reported

    5/31/2025House
  8. Record vote

    5/31/2025Senate
  9. Senate adopts conference committee report

    5/31/2025Senate
  10. House adopts conf. comm. report-reported

    5/31/2025Senate
  11. Statement(s) of vote recorded in Journal

    5/31/2025House
  12. Record vote (RV#4109)

    5/31/2025House
  13. House adopts conference committee report

    5/31/2025House
  14. Conf. Comm. Report distributed

    5/30/2025House
  15. House appoints conferees-reported

    5/30/2025Senate
  16. House grants request for conf comm-reported

    5/30/2025Senate
  17. Conference committee report filed

    5/30/2025Senate
  18. House appoints conferees

    5/30/2025House
  19. House grants request for conference committee

    5/30/2025House
  20. Senate appoints conferees-reported

    5/29/2025House
  21. Senate requests conference committee-reported

    5/29/2025House
  22. Senate refuses to concur-reported

    5/29/2025House
  23. Senate appoints conferees

    5/29/2025Senate
  24. Senate requests conference committee

    5/29/2025Senate
  25. Senate refuses to concur

    5/29/2025Senate

Bill Text

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