Regular Session
Harris County Hospital District • Texas Health and Human Services Commission
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.
Our government affairs experts can walk you through this bill's specific impact on your operations.
Schedule 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
BILL ANALYSIS |
| H.B. 1327 |
| By: Harless |
| Intergovernmental Affairs |
| Committee Report (Unamended) |
| BACKGROUND AND PURPOSE In 2019, legislation was enacted providing for the Harris County Hospital District's health care provider participation program. Under the program, nonpublic hospitals agree to the imposition of an assessment on their total net patient revenues which is matched with federal Medicaid dollars that are paid to the hospitals to supplement below-cost Medicaid payments. The author of this bill has informed the committee of the impending expiration of the district's program and of the need for an extension of the expiration date in order to provide for the program's continuance. H.B. 1327 seeks to address this issue by providing for such continuance until December 31, 2027.
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| CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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| RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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| ANALYSIS H.B. 1327 amends the Health and Safety Code to postpone from December 31, 2025, to December 31, 2027, the expiration of the authority of the Harris County Hospital District to administer and operate a health care provider participation program and the expiration of related statutory provisions.
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| EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
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| H.B. No. 1327 | ||
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| relating to the continuation of a health care provider | ||
| participation program by the Harris County Hospital District. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 299.004, Health and Safety Code, is | ||
| amended to read as follows: | ||
| Sec. 299.004. EXPIRATION. (a) Subject to Section | ||
| 299.153(d), the authority of the district to administer and operate | ||
| a program under this chapter expires December 31, 2027 [ |
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| (b) This chapter expires December 31, 2027 [ |
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| SECTION 2. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2025. | ||
| TO: | Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | HB1327 by Harless (Relating to the continuation of a health care provider participation program by the Harris County Hospital District.), As Introduced |
| Source Agencies: | 529 Health and Human Services Commission |
| LBB Staff: | JMc, SZ, BC, CWi, CMA |
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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. Implementation Timeline Effective Date: May 28, 2025 (Immediate effect).
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 compliance urgency for HB1327 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
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.
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