Certificate of Public Advantage

House Bill (H.B.) 3301, 86th Legislature, 2019, Regular Session, added Chapter 314A to the Texas Health and Safety Code (HSC). In H.B. 3301, the legislature found that a hospital merger may benefit the public by maintaining or improving the quality, efficiency, and accessibility of health care services offered to the public; and these benefits may outweigh any anticompetitive effects of joining together competitors to address unique challenges in providing health care services in rural areas. HSC Chapter 314A permits qualifying hospitals in certain low-population counties to apply for a COPA, which grants merging hospitals immunity from federal and state antitrust laws. In addition to rulemaking, HSC Chapter 314A requires HHSC, as the agency designated by the governor under HSC Section 314A.004, to review and approve or deny COPA applications and to supervise the activities for which a COPA is issued.

Under HSC Section 314A.052(b), an applicant may submit two versions of the application: one version for HHSC's use that is unredacted, and one version for public release that has proprietary information redacted. The applicant is solely responsible for any redactions made to the public version of a COPA document, which HHSC will post as received.

Texas Laws and Rules

Eligible Counties

  • Angelina
  • Bowie
  • Cherokee
  • Colorado
  • Taylor
  • Tom Green
  • Wichita
  • Wood

Apply for a COPA

To apply for a COPA, applicants must submit a $75,000 application fee and all required information to HHSC. Applicants must also provide all application information to the Attorney General. For directions on how to apply for a COPA review the COPA Application Checklist (PDF).

Apply for a Rate Change

Supervision Fees

Each hospital operating under a COPA must submit an annual supervision fee in accordance with Texas Administrative Code Title 26 (26 TAC) Section 567.36. The amount of the annual supervision fee is $100,000 for each hospital operating under the COPA. HHSC may increase or decrease this amount within the limits described in HSC Section 314A.105 and 26 TAC Section 567.36.

Each hospital operating under a COPA shall pay the first supervision fee no later than 30 calendar days after the date HHSC issues the COPA and each subsequent supervision fee no later than the anniversary of the date HHSC issued the COPA.

Approved COPAs

Shannon Health System- San Angelo, Texas (Tom Green County)

HHSC granted Shannon Health System a COPA on October 2, 2020. Below are the approval documents for the merger.

Public Comments Received on the Shannon Application

Baseline Reporting Information

Fiscal Year 2021 Quarterly Reporting Information

Fiscal Year 2022 Quarterly Reporting Information

Fiscal Year 2023 Quarterly Reporting Information

Fiscal Year 2024 Quarterly Reporting Information

Note: HHSC permits COPA holders to submit two versions of a report: one version for HHSC's use that is unredacted, and one version for public release that has proprietary information redacted. The COPA holder is solely responsible for any redactions made to the public version of a report, which HHSC will post as received.

Hendrick Health System - Abilene, Texas (Taylor County)

HHSC granted Hendrick Health System a COPA on October 2, 2020. Below are the approval documents for the merger.

Public Comments Received on the Hendrick Application

Baseline Reporting Information

Fiscal Year 2021 Quarterly Reporting Information

Fiscal Year 2022 Quarterly Reporting Information

Fiscal Year 2023 Quarterly Reporting Information

Fiscal Year 2024 Quarterly Reporting Information

Note: HHSC permits COPA holders to submit two versions of a report: one version for HHSC's use that is unredacted, and one version for public release that has proprietary information redacted. The COPA holder is solely responsible for any redactions made to the public version of a report, which HHSC will post as received.

Complaints

For information on how to file a complaint, visit File a Complaint Against a Health Facility or Health Care Regulation Representative.

Open Records Requests

Texas Health and Human Services is committed to providing full access to public information. For information on how to submit an open records request, visit Open Records Policy and Procedures.

Contact Information

  • Email: COPA@hhs.texas.gov
  • Mailing Address for COPA Application and Supervision Fees:
    HHSC – Accounts Receivable
    Mail Code 1470
    P.O. Box 149055
    Austin, Texas 78714-9055

Note: Applicants must include HHSC Accounting Service Code 529201410 on the check when submitting payment for a COPA application or supervision fee.