Relating to the continuation and operation of a health care provider participation district created by certain local governments to administer a health care provider participation program.

HB 3505 creates a program allowing specific Texas counties and hospital districts to establish health care provider participation districts that collect mandatory payments from local hospitals. These payments fund the state's nonfederal share of Medicaid supplemental payments for participating hospitals. The bill applies only to counties with populations between 80,000-90,000 bordering the Trinity River, 45,000-55,000 bordering Oklahoma, or hospital districts near Jim Chapman Lake. This structure provides a local mechanism for hospitals in these defined areas to contribute to Medicaid cost-sharing.