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HB 3902

Relating to the continued reimbursement under Medicaid for nursing facilities after a change in ownership.

89th Legislature (2025) Introduced by Richard Raymond and 1 co-sponsor

HB 3902 ensures Texas nursing facilities maintain uninterrupted Medicaid reimbursement during ownership changes to preserve resident care funding stability.

Placed on General State Calendar
#health&humanservicescommission(v0177) #humanservices--medicalassistance(i0905) #medicaid(s4885) #medicalcarefacilities(s0455) #nursinghomes(i0539) #occupationalregulation--healthoccupations(i0540) #purchasing--state(i0643)
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Bill Summary · HB 3902

Legislative bill overview

HB 3902 addresses Medicaid reimbursement continuity for nursing facilities that change ownership in Texas. The bill ensures that nursing homes can continue receiving Medicaid payments during ownership transitions without interruption or reimbursement gaps. This maintains operational funding stability during the administrative process of ownership changes.

Why is this important

Nursing facilities depend on Medicaid reimbursement as a major revenue source, and payment interruptions during ownership changes can threaten resident care quality and facility operations. Without reimbursement continuity provisions, facilities may face cash flow crises that could compromise staff payroll, medical supplies, and services. This bill addresses a practical operational gap that directly affects patient care in facilities serving low-income populations.

Potential points of contention

  • Fraud prevention: Opponents may worry that automatic reimbursement continuation could enable new owners to bill Medicaid while avoiding accountability standards or quality inspections
  • Cost to state: Continuous reimbursement during extended transition periods could increase Medicaid expenditures if ownership changes are deliberately prolonged
  • Facility accountability: Questions about whether new ownership maintains the same service quality and compliance standards before reimbursement resumes under new management

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

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