Health & Safety Code Section 534.054
Designation of Provider
(a)The department shall identify and contract with a local mental health authority for each service area to ensure that services are provided to patient populations determined by the department. A local mental health authority shall ensure that services to address the needs of priority populations are provided as required by the department and shall comply with the rules and standards adopted under Section 534.052 (Rules and Standards).
(c)The department may contract with a local agency or a private provider or organization to act as a designated provider of a service if the department:
(1)cannot negotiate a contract with a local mental health authority to ensure that a specific required service for priority populations is available in that service area; or
(2)determines that a local mental health authority does not have the capacity to ensure the availability of that service.
Section 534.054 — Designation of Provider,
https://statutes.capitol.texas.gov/Docs/HS/htm/HS.534.htm#534.054 (accessed Feb. 24, 2024).