Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB18

Regular Session

Relating to the establishment and administration of certain programs and services providing health care services to rural counties.

Government Affairs & Regulatory Compliance Analysis

Business Impact

Who HB18 Affects

Regulatory Priority: critical

Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.

Estimated Cost Impact

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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Immediate Action Plan

Operational Changes Required

Strategic Ambiguities & Considerations

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Information 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.

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Quick Reference

Frequently Asked Questions

Common questions about HB18

Q

What does Texas HB18 do?

HB18 fundamentally restructures rural hospital financing by establishing the State Office of Rural Hospital Finance (SORHF) and mandating strict local control over state grant funds. Effective immediately, rural hospitals in counties with populations of 68,750 or less must segregate grant governance from corporate parent systems and prepare for new OB/GYN reimbursement methodologies. Failure to adhere to new governance structures will disqualify facilities from four critical grant streams.

Q

Who authored HB18?

HB18 was authored by Texas Representative Gary Vandeaver during the Regular Session.

Q

When was HB18 signed into law?

HB18 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB18?

HB18 is enforced by Health and Human Services Commission (HHSC), State Office of Rural Hospital Finance (newly established within HHSC) and Texas Child Mental Health Care Consortium.

Q

How significant are the changes in HB18?

The regulatory priority for HB18 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB18?

The cost impact of HB18 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB18 address?

HB18 addresses topics including disaster preparedness & relief, education, education--higher, education--higher--health institutions and health care providers.

Q

What are the key dates for HB18?

Key dates for HB18: Effective date is 2025-06-20. Rulemaking: Contract with higher education institutions to administer the Texas Rural Hospital Officers Academy. (2025-12-01); Executive Commissioner must appoint members to the interagency advisory committee for the Academy. (2026-01-01). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB18?

HB18 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Legislative data provided by LegiScanLast updated: January 11, 2026