Tennessee Senate Bill SB0403

Tennessee 2025-2026 Regular Session

• Introduced: 1/28/25
• Failed: 3/18/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 8; Title 16; Title 18; Title 20; Title 21; Title 27; Title 28; Title 29; Title 33; Title 45; Title 47; Title 63; Title 68 and Title 71, relative to healthcare costs.

Impact

The impact of SB0403 on state law is significant, as it aligns state regulations with practices aimed at mitigating the financial strain faced by individuals in need of medical care. By compelling facilities to acknowledge and act upon outstanding debts linked to uncompensated care, the bill serves the dual purpose of holding facilities accountable while also safeguarding patients from debt collection actions related to these services. The integration of this legislation into state law underscores Tennessee's intent to enhance the financial protections for its residents regarding healthcare services.

Summary

Senate Bill 403 (SB0403) aims to amend various titles of the Tennessee Code Annotated focusing on healthcare costs, specifically addressing the issue of uncompensated care. The bill defines uncompensated care as healthcare services delivered to patients for which no payment has been received. To alleviate the financial burden associated with such care, the bill stipulates that healthcare facilities accepting public funds for losses incurred due to uncompensated care must designate an equivalent amount of patient debt as satisfied. This means that facilities would not pursue collection of this debt, providing a form of debt relief to patients who received such services.

Contention

Despite its potential benefits, SB0403 may encounter points of contention, particularly regarding the enforcement of its provisions and the administrative responsibilities it imposes on healthcare facilities. Some stakeholders might express concerns about the viability of healthcare institutions being required to absorb such debts indefinitely. Furthermore, the bill mandates that the health facilities commission produce rules to establish a procedural framework for leveraging public funds in offsetting uncompensated care losses, which could be complex and bureaucratic. The need for an annual report to the general assembly on expenditures related to uncompensated care adds another layer of accountability, yet could also lead to debates regarding transparency and appropriate use of funds.

Enforcement

The enforcement of SB0403 will be under the jurisdiction of the health facilities commission, which is authorized to impose sanctions on any facility found in violation of the new regulations. This structure aims to ensure compliance among healthcare providers, but it raises questions about the practicality of implementation and the potential burden on facilities, especially those already facing financial challenges. In summary, while SB0403 seeks to foster an equitable healthcare landscape by addressing uncompensated care, it entails several complexities that will require careful consideration and management.