Tennessee House Bill HB2211

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/31/24
• Refer: 3/12/24
• Refer: 3/19/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 63; Title 68 and Title 71, Chapter 5, relative to hospital reimbursement.

Impact

The proposed amendments are expected to significantly impact rural healthcare by establishing a more structured framework for reimbursement. By ensuring rural hospitals receive financial backing in line with Medicare rates, the bill could alleviate some of the financial challenges these institutions face. Furthermore, it outlines measures that allow the department to seek federal waivers to implement these changes without necessitating Medicaid expansion, therefore potentially streamlining the process and enhancing healthcare access in rural areas.

Summary

House Bill 2211 aims to amend various sections of the Tennessee Code Annotated related to hospital reimbursement, specifically focusing on rural hospitals. The bill introduces definitions specific to 'rural area' and 'rural hospital', thereby setting parameters for reimbursement rates for services rendered to TennCare enrollees at these facilities. For routine, nonspecialized inpatient services, the bill stipulates that reimbursement rates will range from 100% to 120% of each rural hospital's current FFY Medicare reimbursement. This approach is intended to bolster financial support for rural hospitals, ensuring they can provide adequate care to their communities.

Sentiment

The sentiment around HB2211 generally appears to support the necessity of enhancing resources for rural hospitals. Legislators and stakeholders recognize the importance of ensuring that these facilities have the means to operate effectively, especially in underserved regions. However, there may be some concerns regarding the reliance on federal waivers, as well as ensuring that the reimbursement framework is sustainable and does not lead to unforeseen consequences for hospital operations or state budget allocations.

Contention

Notable points of contention regarding HB2211 could arise from the details of the reimbursement framework and its implications for the overall healthcare system in Tennessee. Discussions may focus on ensuring that the reimbursements do not disproportionately affect budget allocations for other healthcare initiatives, as well as the broader impacts of not expanding Medicaid as part of this bill. Additionally, the differing definitions of 'rural' and the set limits for reimbursement could lead to debates about fairness and adequacy in supporting all hospitals across the state.