1. (a) Notwithstanding any other law, the commission shall ensure that a nursing facility providing Medicaid services to recipients continues to receive Medicaid reimbursement uninterrupted while a change in ownership application for the facility is pending with the commission, provided the facility under the new ownership:

   1. (1) accepts assignment of the previous owner's Medicaid provider agreement subject to applicable federal and state law, including applicable federal and state regulations;
   2. (2) satisfies applicable requirements under federal and state law, including the licensing requirement under Chapter 242, Health and Safety Code;
   3. (3) if required by the terms of and agreed to by the parties to the contract, assumes the contract to deliver Medicaid nursing facility services in effect before the change in ownership;
   4. (4) subject to Subsection (b), enters into a successor liability agreement, approved by the commission; and
   5. (5) meets any additional requirements prescribed by the commission.

2. (b) A successor liability agreement under Subsection (a)(4) must require that the facility under the new ownership:

   1. (1) pay the commission for any outstanding liabilities under the contract in effect before the change in ownership that are identified by the commission; and

   2. (2) agree that an outstanding liability identified by the commission may include a liability incurred by the previous owner without regard to:

      1. (A) when a service was provided or a claim was filed; or
      2. (B) whether the liability is identified by the commission or another authorized entity, including a Medicaid managed care organization.
3. (c) This section does not apply to a supplemental payment program or a directed payment program, as defined by Section 532.0102, operated or administered by the commission.
4. (d) The executive commissioner shall adopt rules necessary to implement this section.

Added by Acts 2025, 89th Leg., R.S., Ch. 1135 (S.B. 457), Sec. 1, eff. September 1, 2025.