1. (a) Under Texas Health and Safety Code §251.092 (relating to Involuntary Appointment), the Texas Health and Human Services Commission (HHSC) may request the attorney general to bring an action in the name and on behalf of the state to appoint a temporary manager to manage a facility if:

   1. (1) the facility is operating without a license;
   2. (2) HHSC has denied, suspended, or revoked the facility's license but the facility continues to operate;
   3. (3) license denial, suspension, or revocation proceedings against the facility are pending, and HHSC determines that an imminent or reasonably foreseeable threat to the health and safety of a facility's patient exists;
   4. (4) HHSC determines that an emergency exists that presents an immediate threat to the facility's patient's health and safety;
   5. (5) the facility is closing and arrangements for the care of patients by other licensed facilities have not been made before closure; or
   6. (6) HHSC determines a level three corrective action plan, under §507.87(c)(3) of this subchapter (relating to Corrective Action Plan) that includes appointment of an involuntary temporary manager, is necessary to address serious or life-threatening conditions at the facility.

2. (b) After a hearing under Texas Health and Safety Code §251.092, a court appoints a temporary manager to manage a facility, if the court finds appointing the manager is necessary.

   1. (1) The court order addresses the temporary manager's duties and authority, which may include facility management and providing dialysis services to facility patients until specified circumstances occur, such as new facility ownership, compliance with the statute or this chapter, or facility closure.
   2. (2) If possible, the court appoints as temporary manager an individual whose background includes administration of end stage renal disease facilities or similar facilities.
   3. (3) The venue for an action under this section is in Travis County.

3. (c) A temporary manager appointed under this section is entitled to a reasonable fee, as determined by the court in accordance with Texas Health and Safety Code §251.093 (relating to Fee; Release of Funds).

   1. (1) The facility shall pay the fee.
   2. (2) The temporary manager may petition the court to order the release of any payment owed to the manager for care and services provided to facility patients if the facility withholds payment.

   3. (3) Withheld payments that may be released may include payments withheld by a governmental agency or other entity before or during the temporary manager's appointment, including:

      1. (A) Medicaid, Medicare, or insurance payments; or
      2. (B) payments from another third party.

Source Note:The provisions of this §507.89 adopted to be effective December 23, 2025, 50 TexReg 8289.