September 11th, 2026
Prompt Payment Act:
HHSC stated that it has received an increase in complaints from subcontractors (ISS providers, HH providers, and other entities) reporting that they have not been paid by the program provider.
According to the statute: Sec. 2251.022.
TIME FOR PAYMENT BY VENDOR. (a) A vendor who receives a payment from a governmental entity shall pay a subcontractor the appropriate share of the payment not later than the 10th day after the date the vendor receives the payment. (b) The appropriate share is overdue on the 11th day after the date the vendor receives the payment.
Concerning the above, according to HHSC
~ The requirement DOES NOT apply to circumstances in which the provider has billed but not yet been reimbursed.
~ The requirement DOES apply if the provider has been paid for the service in question, yet due to other actions imposed the funds were recouped.
~ HHSC (CAPM department) has terminated the contract of several program providers for non-payment of services to a subcontractor for which evidence supports the provider was reimbursed for the services delivered by the subcontractor.
