Tennessee House Bill HB2600

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24
• Refer: 2/5/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 68, Chapter 11, Part 13, relative to the Hospital Cooperation Act of 1993.

Impact

If enacted, HB2600 would reinforce competitive practices among hospitals by prohibiting them from engaging in anti-competitive agreements. The bill emphasizes that healthy competition is paramount for public welfare and seeks to revert the current trend of permitting monopolistic practices in the healthcare sector, which many argue have resulted in considerable public harm. This change is considered crucial for the citizens of upper east Tennessee, who have been adversely affected by inadequate charity care and deteriorating health services due to the current regulatory exemptions granted to certain hospital systems.

Summary

House Bill 2600 proposes significant amendments to the Tennessee Code Annotated regarding the Hospital Cooperation Act of 1993. The bill aims to dismantle the framework that has allowed certain hospital systems, particularly Ballad Health, to operate under a monopoly, exempt from standard antitrust regulations. This legislative move is driven by concerns over the detrimental consequences of such monopolistic practices, which have reportedly led to severe failures in meeting community health obligations and declining healthcare quality metrics in the region.

Contention

Some notable points of contention surrounding the bill include its implications for existing hospital systems and the framework of oversight currently practiced by the Tennessee Department of Health and the Attorney General's office. Proponents of the bill argue that the existing monopoly system has failed to deliver promised public benefits and has compromised patient care standards. Conversely, opponents express concerns regarding the potential disruption to healthcare services and the economic consequences of dismantling established hospital systems, highlighting the complexities involved in regulating healthcare competition effectively.