(a) To the extent prescribed by this chapter, a public hospital is liable for health care services provided under this subchapter by any provider, including another public hospital, to an eligible resident in the hospital’s service area. A public hospital is not liable for payment for health care services provided to:
(1) a person who does not reside in the hospital’s service area; or
(2) an eligible resident of the hospital’s service area by a hospital having a Hill-Burton or state-mandated obligation to provide free services and considered to be in noncompliance with the requirements of the Hill-Burton or state-mandated obligation.
(b) A hospital district is liable for health care services as provided by the Texas Constitution and the statute creating the district.

Terms Used In Texas Health and Safety Code 61.060

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Statute: A law passed by a legislature.

(c) A public hospital is the payor of last resort under this subchapter and is not liable for payment or assistance to an eligible resident in the hospital’s service area if any other public or private source of payment is available.
(d) If another source of payment does not adequately cover a health care service a public hospital provides to an eligible resident of the hospital’s service area, the hospital shall pay for or provide the health care service for which other payment is not available.