Texas Home Management, Inc. v. Texas Department of Mental Health & Mental Retardation

BEA ANN SMITH, Justice.

Texas Home Management, Inc. d/b/a Ap-pleby Home appeals the district court’s order affirming the decision of the Texas Department of Mental Health and Mental Retardation (MHMR) terminating Appleby Home’s Medicaid contract due to the imposition of three vendor holds within an eighteen-month period. Appleby Home contends MHMR lacks the statutory authority to impose vendor holds on mental health care facilities and to terminate the facilities’ Medicaid contracts pursuant to the “Three-Strike Rule.” Apple-by Home also challenges two of the three vendor holds as unsupported…