SECTION 49.208. Provisional Contract Application Approval

(a) HHSC approves a provisional contract application if it is not denied in accordance with §49.207 of this subchapter (relating to Provisional Contract Application Denial).

(b) If HHSC approves a provisional contract application, HHSC:

(1) provides written notification to the applicant;

(2) enters into a provisional contract with the applicant; and

(3) except as provided in §49.302(b) of this chapter (relating to General Requirements), places the contract on the choice list for the program or service covered by the provisional contract.

(c) HHSC may subject a provisional contract to conditions in accordance with 1 TAC Chapter 352 (relating to Medicaid and the Children's Health Insurance Program Provider Enrollment) and 1 TAC Chapter 371, Subchapter E (relating to Provider Disclosure and Screening).

(d) The effective date of a provisional contract is as follows:

(1) if the applicant applied for the contract in accordance with §49.210(a)(2) of this subchapter (relating to Contractor Change of Ownership or Legal Entity), the effective date is the effective date of the change of ownership or legal entity of the contractor; or

(2) for an applicant other than one described in paragraph (1) of this subsection, the effective date is determined by HHSC.

(e) HHSC and a contractor may agree, in writing, to extend the term of a provisional contract. A provisional contract may be extended only once and for no more than one year. The extension of a provisional contract is not a decision by HHSC that it will offer the contractor a standard contract.

Source Note: The provisions of this §49.208 adopted to be effective September 1, 2014, 39 TexReg 6637; amended to be effective September 1, 2018, 43 TexReg 5230; amended to be effective December 22, 2020, 45 TexReg 9234