Sec. 298D.103.  DEPOSITS TO FUND; AUTHORIZED USES OF MONEY.  (a)  The local provider participation fund established under Section 298D.102 consists of:
(1)  all mandatory payments authorized under this chapter and received by the district;
(2)  money received from the Health and Human Services Commission as a refund of an intergovernmental transfer from the district to the state as the nonfederal share of Medicaid supplemental payment program payments, provided that the intergovernmental transfer does not receive a federal matching payment; and
(3)  the earnings of the fund.
(b)  Money deposited to the local provider participation fund may be used only to:
(1)  fund intergovernmental transfers from the district to the state to provide the nonfederal share of Medicaid payments for:
(A)  uncompensated care and delivery system reform incentive payments to nonpublic hospitals, if those payments are authorized under the Texas Healthcare Transformation and Quality Improvement Program waiver issued under Section 1115 of the federal Social Security Act (42 U.S.C. Section 1315);
(B)  uniform rate enhancements for nonpublic hospitals in the Medicaid managed care service area in which the district is located;
(C)  payments available to nonpublic hospitals under another waiver program authorizing payments that are substantially similar to Medicaid payments to nonpublic hospitals described by Paragraph (A) or (B); or
(D)  any reimbursement to nonpublic hospitals for which federal matching funds are available;
(2)  subject to Section 298D.151(d), pay the administrative expenses of the district in administering the program, including collateralization of deposits;
(3)  refund a portion of a mandatory payment collected in error from a paying hospital; and
(4)  refund to paying hospitals a proportionate share of the money that the district:
(A)  receives from the Health and Human Services Commission that is not used to fund the nonfederal share of Medicaid supplemental payment program payments described by Subdivision (1); or
(B)  determines cannot be used to fund the nonfederal share of Medicaid supplemental payment program payments described by Subdivision (1).
(c)  Money in the local provider participation fund may not be commingled with other district funds.
(d)  An intergovernmental transfer of funds described by Subsection (b)(1) and any funds received by the district as a result of an intergovernmental transfer described by that subsection may not be used by the district or any other entity to expand Medicaid eligibility under the Patient Protection and Affordable Care Act (Pub. L. No. 111-148) as amended by the Health Care and Education Reconciliation Act of 2010 (Pub. L. No. 111-152).
Added by Acts 2019, 86th Leg., R.S., Ch. 454 (S.B. 2448), Sec. 1, eff. June 4, 2019.
Redesignated by Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 21.001(56), eff. September 1, 2021.
Amended by: 
Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 21.002(14), eff. September 1, 2021.