Relating to the administration and operation of the school health and related services program.

Contracts

Third-Party Billing Vendors: You must amend Master Services Agreements (MSAs) immediately.

• Replace vague references to "state guidelines" with specific citations to HHSC regulations and the Texas Medicaid Provider Procedures Manual (TMPPM).
• Update indemnification clauses to protect the LEA specifically against recoupments caused by vendor failure to adhere to new HHSC-mandated protocols.

Healthcare Staffing:

• Update agreements with therapy and nursing staffing agencies to require participation in HHSC-administered training as a condition of payment.

Hiring/Training

• Mandatory Training: The law mandates HHSC-administered training. Previous TEA-sponsored training credits may effectively expire on September 1.
• Staffing: Ensure Special Education Directors and Finance Officers are subscribed to HHSC provider notices, not just TEA advisories.

Reporting & Record-Keeping

• Audit Standards: Transition all documentation standards from educational (IEP-focused) to medical (Medicaid-focused). Records must explicitly prove medical necessity and include physician referrals/prescriptions to survive HHSC scrutiny.
• Training Logs: Maintain rigorous logs of staff attendance at new HHSC training sessions; these will be requested during audits to verify provider qualifications.

Fees & Costs

• Direct Costs: No new statutory fees are introduced.
• Indirect Costs: Budget for administrative hours required for staff retraining and contract legal review.
• Financial Risk: Expect increased recoupment risk as audits shift to a stricter medical standard.