The Texas Health and Human Services Commission notified THA Aug. 31 that it would delay the Sept. 1 deadline to implement requirements for neonatal facility designation to Oct. 1. The Texas Medicaid Healthcare Partnership’s notification to providers is available here. House Bill 3433, 84th Legislature, required hospitals that provide neonatal care to have a Level, I, II, III or IV designation from TDSHS by Sept. 1 to receive Medicaid reimbursements for neonatal services provided. 

TDSHS is working to process a backlog of applications so managed care organizations can begin processing Medicaid claims for neonatal services by Oct. 1.

House Bill 15, 83rd Legislature, required the development of initial rules to create neonatal and maternal level of care designation. TDSHS neonatal level of care designation rules have been adopted and are effective as of June 9, 2016.

TDSHS’ FAQ for Neonatal Designation

Click here to read TDSHS's frequently asked questions (and answers) for Neonatal Designation.

Deadlines for Achieving Designation

  • May 1, 2018 – Surveys must be completed.
  • June 1, 2018 – Completed application packet for designation must be received by TDSHS’ EMS and Trauma Systems Coordination Office. Please note that application packets must be received no later than 120 days following survey date or self-survey/self-attestation date.
  • August 31, 2018 – Designation approved by the Executive Commissioner

Applications and additional information is available from TDSHS’ Neonatal System Development Web page.

Please contact TDSHS’ Neonatal Designation Coordinators with questions or for further assistance.

Debbie Lightfoot, RN
512-834-6700 ext. 2032

Alisha Wilkin, RN

HB 15 (83rd Legislature) – Relating to level of care designations for hospitals that provide neonatal and maternal services. Read more


Jennifer Banda, J.D., vice president, advocacy, public policy and HOSPAC, 512/465-1046

Carrie Kroll, vice president, advocacy, quality and public health, 512/465-1043