(a) The executive commissioner shall adopt rules relating to:
(1) the selection and expedited selection of providers, including physicians, registered nurses, and facilities; and
(2) the denial, modification, suspension, and termination of program participation.
(b) The department shall select and approve providers to participate in the program according to the criteria and following the procedures prescribed by department rules.

(c) The department shall pay only for program services provided by approved providers, except in an emergency.
(d) The executive commissioner may not adopt facility approval criteria that discriminate against a facility solely because it is operated for profit.
(e) The department may not exclude a provider solely because the provider receives federal funds if the federal funds are inadequate to provide the services authorized by this chapter to all eligible individuals seeking services from that provider.
(f) The department shall provide a due process hearing procedure in accordance with department rules for the resolution of conflicts between the department and a provider. Chapter 2001, Government Code, does not apply to conflict resolution procedures adopted under this section.
(g) The department shall render the final administrative decision in a due process hearing to modify, suspend, or terminate the approval of a provider.
(h) The department may not terminate a grant or contract while a due process hearing is pending under this section. The department may withhold payments while the hearing is pending but shall pay the withheld payments and resume grant or contract payments if the final determination is in favor of the provider.
(i) The notice and hearing required by this section do not apply if a grant or contract:
(1) is canceled by the department because of exhaustion of funds or because insufficient funds require the executive commissioner to adopt service priorities; or
(2) expires according to its terms.