Regular Session
Government Affairs & Regulatory Compliance Analysis
HB 1327 immediately extends the Harris County Hospital District’s authority to collect mandatory provider participation payments (LPPF) through December 31, 2027. Nonpublic hospitals within the District must retain these significant assessment costs in their FY 2026 and FY 2027 budgets, as the previously scheduled expiration of December 31, 2025, is now void.
Rep. Sam Harless·House Bill·Regular Session
Harris County Hospital District • Texas Health and Human Services Commission
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-05-28). Consider how these changes may affect your operations.
Affected business types:
highSignificant operational investment may be required.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Review Managed Care Organization (MCO) contracts containing "pass-through" or "add-on" payment provisions derived from this program. If these provisions are drafted to auto-expire on December 31, 2025, you must execute amendments immediately to align with the new statutory expiration of December 31, 2027.
No new staffing is required. However, Finance Directors must instruct teams to cancel any "wind-down" procedures previously scheduled for year-end 2025 regarding this liability.
You must continue mandatory reporting of Net Patient Revenue and other financial data to the District. These figures constitute the basis for your assessment rate; failure to report accurate data will result in incorrect taxation and potential audit exposure.
High Impact. You must forecast mandatory provider participation payments for an additional 24 months (FY 2026 and FY 2027). Ensure liquidity reserves are maintained to cover these assessments, as payments are often due prior to the receipt of the associated Medicaid supplemental payment reimbursements.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB1327
HB 1327 immediately extends the Harris County Hospital District’s authority to collect mandatory provider participation payments (LPPF) through December 31, 2027. Nonpublic hospitals within the District must retain these significant assessment costs in their FY 2026 and FY 2027 budgets, as the previously scheduled expiration of December 31, 2025, is now void.
HB1327 was authored by Texas Representative Sam Harless during the Regular Session.
HB1327 was signed into law by Governor Greg Abbott on May 28, 2025.
HB1327 is enforced by Harris County Hospital District and Texas Health and Human Services Commission.
The regulatory priority for HB1327 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB1327 is estimated as "high". This may vary based on industry and implementation requirements.
HB1327 addresses topics including harris county hospital district, health care providers, hospitals, special districts & authorities and special districts & authorities--hospital.
Key dates for HB1327: Effective date is 2025-05-28. Consult with legal counsel regarding applicability.
HB1327 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
