HHSC may establish a process for procuring DME and supplies that encourages competition and results in savings to HHSC.
  (1) The categories or individual types of DME and supplies that HHSC may procure through a competitive process will be determined by HHSC using the following criteria:
    (A) the DME or supplies are used by a recipient in sufficient quantities to encourage the competitive process and be cost effective for HHSC;
    (B) the DME or supplies can be timely, safely, and effectively dispensed or provided by a prime vendor or contractor with a physician's or an allowed practitioner's prescription or order:
      (i) without the necessity of fitting or instruction on its use; or
      (ii) fitting and instruction can be provided by the prime vendor or contractor in compliance with HHSC criteria;
    (C) dispensing or providing the DME or supplies through a prime vendor or contractor will not limit or impair the accessibility and availability of the DME or supplies to the recipient requiring the DME or supplies;
    (D) dispensing or providing the DME or supplies through a prime vendor or contractor will not result in the recipient receiving those DME or supplies in an unusable condition; and
    (E) acquiring the DME or supplies through a prime vendor or contractor using a competitive process will result in cost savings to HHSC's.
  (2) HHSC may limit the number of providers with whom it will contract using the following criteria:
    (A) all providers must submit a complete response to each section of HHSC's procurement offer which will be used to evaluate provider qualifications, DME and supplies specifications, and accessibility and pricing provisions. Providers who fail to submit complete responses will be excluded from evaluation and consideration;
    (B) the number of providers may be limited to only the number required to ensure statewide accessibility to the DME and supplies being procured; and
    (C) the number of qualified providers will be limited to those providers who submit competitive responses which will result in savings to HHSC.

Source Note: The provisions of this §354.1043 adopted to be effective August 20, 1998, 23 TexReg 8440; transferred effective September 1, 2001, as published in the Texas Register May 24, 2002, 27 TexReg 4561; amended to be effective September 21, 2022, 47 TexReg 5779