Tennessee House Bill HB2544

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24
• Refer: 2/1/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 68, relative to healthcare facilities.

Impact

If enacted, HB2544 will not only require government hospitals to submit regular reports but also additional reports when requesting public funds or closing service lines. These disclosures will include the rationale behind financial decisions, such as bonuses and service line closures, providing a clearer view of hospital financial practices to both state regulators and the public. This could lead to more accountable management and help prevent misuse of public funds.

Summary

House Bill 2544 aims to enhance transparency in the financial management of government-owned hospitals and health systems in Tennessee. The bill mandates that such entities disclose any administrative bonuses or salary increases, as well as any disbursements made to contractors, to the health facilities commission on an annual basis. This disclosure is particularly required when hospitals seek additional taxpayer funding or face service reductions, ensuring that financial actions are made clear to the public and relevant authorities.

Contention

While the bill is intended to promote financial transparency, it may face scrutiny regarding its effectiveness and the potential administrative burden it imposes on healthcare facilities. Some stakeholders may argue that the requirement for regular disclosures could divert resources away from patient care and operational efficiencies. Moreover, the bill's potential enforcement mechanisms, including civil fines and licensing sanctions for non-compliance, could lead to apprehension within the healthcare community regarding their operational freedoms.