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HB 3708

Relating to charity care provided by certain nonprofit hospitals and hospital systems and the calculation of net patient revenue for purposes of determining the charity care provided by those entities; authorizing an administrative penalty.

89th Legislature (2025) Introduced by James Frank and 1 co-sponsor

HB 3708 redefines nonprofit hospital charity care calculation methods in Texas and imposes administrative penalties for non-compliance or misreporting.

Committee report sent to Calendars
#attorneygeneral(v2811) #charitable&nonprofitorganizations(i0055) #civilremedies&liabilities(i0065) #debt(s0116) #health&humanservicescommission(v0177) #hospitals(i0400) #humanservices--medicalassistance(i0905)
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Bill Summary · HB 3708

Legislative bill overview

HB 3708 modifies how Texas nonprofit hospitals calculate and report charity care obligations, specifically addressing how net patient revenue is determined for compliance purposes. The bill also establishes administrative penalties for entities that fail to meet charity care requirements or provide inaccurate reporting.

Why is this important

Nonprofit hospitals receive tax-exempt status in exchange for providing community benefit, particularly charity care for uninsured and underinsured patients. How states define and enforce these obligations directly affects patient access to care and hospital accountability, making calculation methodology a substantive policy question with financial implications for both hospitals and patients.

Potential points of contention

  • Definition disputes: Changes to how "net patient revenue" is calculated could significantly alter the denominator used to determine required charity care percentages, potentially raising or lowering obligations depending on what's included/excluded
  • Compliance burden vs. accountability: Administrative penalties may incentivize accurate reporting, but unclear standards could create compliance costs for smaller nonprofit systems or result in penalties based on calculation disputes rather than genuine charity care shortfalls
  • Tax-exempt justification: The bill implicitly raises questions about what level of charity care justifies tax exemption—some argue current levels are insufficient, while hospitals may contend reporting changes create unfair retroactive burdens

Compiled from official sources — confirm details with the bill’s official record.

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