1. (a) The board will appoint an operator who will be responsible for maintenance and operation of a TSVH. An operator may be an individual, partnership, corporation, or other business entity, as well as a state or federal agency.

2. (b) The board will set qualifications, requirements, terms and conditions, and all contract specifications to be met by the operator. No appointment of an operator shall be effective until a contract has been awarded and duly executed by the board and the operator. The functions of the operator will be provided for in the contract. These functions shall include, but are not limited to, the following:

   1. (1) to manage and operate the TSVH in compliance with all applicable federal, state and local laws, rules, regulations, standards, and policies;
   2. (2) to develop, implement, and maintain policies and procedures for all aspects of the management and operation of the TSVH. All such policies and procedures shall be reviewed and approved by the board. All such policies and procedures shall remain the property of the board in the event of cancellation or termination of the contract for any reason;
   3. (3) to secure and retain all licenses and certifications required to operate the TSVH as a skilled nursing care facility with an Alzheimer's/dementia care unit or a skilled nursing care facility dedicated exclusively to Alzheimer's/dementia care. The operator shall ensure that all personnel employed at the TSVH are properly licensed or certified for the work they are performing. The operator shall secure and retain such other licenses and certifications as may be required by the board;
   4. (4) to be fully responsible for the management and supervision of the daily operations of the home, including the development, implementation, and operation of all necessary administrative systems, including, but not limited to, accounting, personnel, reporting, administrative records, medical records, and purchasing;
   5. (5) to provide annual operating statements and budget estimates to the board;
   6. (6) to make available at reasonable times and for reasonable periods books, records, and supporting documents kept current by the operator pertaining to the TSVH for purposes of inspecting, monitoring, auditing, or evaluating by the board and its representatives, and representatives of the Texas Department of Health and Human Services, USDVA, the state auditor, the comptroller of public accounts, and other applicable agencies; and
   7. (7) to notify the board, immediately following notifications required by law, of any abuse or suspected abuse of a resident, any unexpected or unexplained injury or death of a resident, or any immediate threat to the health or safety of a resident.
3. (c) The contract between the operator and the board shall contain guidelines and standards for assessing the performance of the operator. The contract will also describe the circumstances and conditions under which the board may dismiss the operator. The operator's performance may be subject to an annual review by the board's staff.

Source Note:The provisions of this §176.5 adopted to be effective November 24, 1997, 22 TexReg 11092; amended to be effective July 28, 2025, 50 TexReg 4972.