An LMHA shall evaluate the potential for network development.
  (1) The LMHA must seek and use available information to identify and contact potential provider organizations, including the list of interested provider organizations posted on the department's website.
  (2) The LMHA must also consider current contractors, providers who have contacted the LMHA within the past two years, and other service providers in the local service area.
  (3) If a provider has submitted printed or electronic documentation of interest, the LMHA may not eliminate the provider from consideration during the planning process without evidence that the provider:
    (A) is no longer interested; or
    (B) is clearly not qualified or capable of providing services in accordance with applicable state and local laws and regulations.
  (4) The potential for network development exists if an LMHA has one or more provider organizations interested in providing routine outpatient or specialized services.
  (5) If an LMHA identifies the potential for network development, it must develop a procurement plan. The plan shall include all opportunities for network development, except as limited by the conditions listed in §412.755 of this title (relating to Conditions Permitting LMHA Service Delivery). This includes opportunities to add new services, new provider organizations, and/or additional capacity. An LMHA may choose to procure discrete services if it can ensure the integrity of levels of care and effective service coordination.

Source Note: The provisions of this §301.263 adopted to be effective January 1, 2015, 39 TexReg 10478; transferred effective March 15, 2020, as published in the February 21, 2020 issue of the Texas Register, 45 TexReg 1237