The Texas Health and Human Services Commission (HHSC) is revising its provider enrollment review process to reinforce the requirement for accurate, complete, and consistent disclosure of ownership, creditor, principal, subcontractor, and related provider information.
This revision is intended to strengthen program integrity across Texas Medicaid, the Children’s Health Insurance Program (CHIP), and other Texas Health and Human Services (HHS) programs to support timely and consistent application review and to reduce deficiencies caused by conflicting information.
Dual Providers
If an organizational provider participates in both Medicare and Texas Medicaid, that provider is expected to make accurate and consistent disclosures to each program. Specifically, the following information for each Owner, Creditor, or Principal (OCP) of the practice must be consistent across both Medicare and Texas Medicaid records:
- Owner/Creditor/Principal Name (First and Last)
- Owner/Creditor/Principal Date of Birth (DOB)
- Owner/Creditor/Principal Social Security number (SSN)
- Legal Entity’s name, if applicable
- Legal Entity’s federal Employer Identification Number (EIN), if applicable
Refer to the Texas Medicaid Provider Procedures Manual (TMPPM), section 1.1.9.3, “Owner/Creditor/Principal Entry” and section 1.1.9.4, “Disclosure of Ownership and Control Interest Statement.”
Preventing Processing Delays
To reduce application processing delays, providers are encouraged to review and resolve any discrepancies between their Texas Medicaid and Medicare enrollment records as soon as possible and before their next revalidation.
Discrepancies between Medicare and Texas Medicaid records may result in a deficiency delaying the enrollment process.
To help prevent delays, providers should ensure that all their information is accurate, consistent, and complete upon submission by:
- Reviewing both Medicare and Texas Medicaid records for matching provider, demographic, and enrollment details, including consistent disclosure of ownership, creditor, principal, subcontractor, and any additional disclosures required for nursing facilities.
- Correcting any inconsistencies.
- Confirming that all required information is complete and accurate.
Important: Providers who submit data element changes through the Provider Enrollment and Management System (PEMS) Maintenance function must allow up to 30 business days from the date on which the Texas Medicaid & Healthcare Partnership (TMHP) receives the form before the provider will be able to complete the revalidation application in PEMS. This period is required for the changes to take effect.
Providers must obtain approval for any updates to their Medicare enrollment before they can submit any updates or a new enrollment request to Texas Medicaid.
Ownership Disclosure Requirements
Providers must include all the identifying information outlined above for each person or entity ownership or control interest.
A Person or Entity with an ownership or control interest means a person or corporation that meets one of the following criteria:
- They have an ownership interest totaling 5% or more in a disclosing entity.
- They have an indirect ownership interest equal to 5% or more in a disclosing entity.
- They have a combination of direct and indirect ownership interests equal to 5% or more in a disclosing entity.
- They own an interest of 5% or more in any mortgage, deed of trust, note, or other obligation secured by the disclosing entity if that interest equals at least 5% of the value of the property or assets of the disclosing entity.
- They are an officer or director of a disclosing entity that is organized as a corporation.
- They are a partner in a disclosing entity that is organized as a partnership.
Total ownership should always equal 100% unless otherwise noted in the instructions. If ownership does not total 100%, the provider must explain the discrepancy.
Creditor Disclosure Requirements
Providers must list each creditor with a security interest in a debt that is owed by the provider if the creditor’s security interest is protected by at least 5% of the provider’s property.
Principal Disclosure Requirements
Providers must list the following principals:
- All corporate officers and directors, limited and non-limited partners, and shareholders of a provider entity (including any professional corporations, professional associations, or limited liability companies in those categories)
- All managing employees or agents who exercise operational or managerial control or who directly or indirectly manage the conduct or day-to-day operations of the provider, including but not limited to On-Site Manager, Pharmacist in Charge, Medical Director, Director of Nursing, Director of Operations, Supervising Licensed Practitioner, or other similar positions
- All individuals, companies, firms, corporations, employees, independent contractors, entities, or associations who have been expressly granted the authority to act for or on behalf of the provider
Subcontractor Disclosure Requirements
A subcontractor is defined as one of the following:
- An individual, agency, or organization to which a disclosing entity has contracted or delegated some of its management functions or responsibilities of providing all or part of the goods, services, work, materials required, or medical care to its patients
- An individual, agency, or organization with which a fiscal agent has entered into a contract, agreement, purchase order, or lease (or leases of real property) to obtain space, supplies, equipment, or services provided under the Texas Medicaid agreement
If a provider contracts or proposes to contract with a management company to perform any services related to the provider's participation in HHSC programs, the provider is required to fully disclose all levels of ownership or control interest in the management company and all entities and all individuals at each level of ownership, from the ownership of the management company to the ownership of each successive ownership entity. The provider is also required to disclose all managing employees at each level of ownership.
Additional Disclosure Requirements for Nursing Facilities
In addition to all other disclosure requirements listed above, a nursing facility (as defined in section 1919(a) of the Social Security Act) is required to disclose any individual, including a general manager, business manager, administrator, director, or consultant, who directly or indirectly manages, advises, or supervises any element of the practices, finances, or operations of the facility.
Additional communication and educational videos will be posted soon.
For more information, call the TMHP Contact Center at 800-925-9126.