Senate bans payments to medical professionals for referrals to unlicensed group homes

The Texas Senate passed committee substitute Senate Bill 1777, which prohibits payments to medical professionals and hospital staff for referring patients to unlicensed group homes and establishes criminal penalties for violations.

Sponsor Senator Miles said the bill addresses reports that unlicensed group homes can exploit vulnerable Texans and that financial incentives sometimes drive referrals to inadequate settings. The committee substitute narrows references to exclude HCS waiver homes and focuses only on unlicensed group homes. The legislation makes it a Class B misdemeanor for health-care providers or staff who accept payment in exchange for referring patients to unlicensed residences and prohibits such payments. Miles said the measure ensures accountability and directs patients to licensed, reputable housing when appropriate.

Senate action: suspension of regular order; passage to engrossment; suspension of the constitutional three-day rule; final passage. Final vote: 31 ayes, 0 nays.

Supporters framed the bill as protecting vulnerable residents from exploitation. The bill passed unanimously in the Senate and will move to the House for further consideration.