SB 403

This bill generally requires a healthcare facility that accepts public funds as compensation for losses due to providing uncompensated care, to (i) ensure that an amount of outstanding patient debt equal to the amount of public funds accepted is designated as satisfied, and to (ii) not seek a judgment or take other legal action to collect from the debtor any portion of such debt that is so designated. NOTIFICATION This bill requires a facility that accepts public funds in the manner previously mentioned to notify the patient whose debt has been satisfied. The notification must include the amount of satisf ied patient debt, and, if applicable, instructions on how to pay the remaining balance of the patient's debt. RULEMAKING This bill requires the health facilities commission to make rules to establish a process for facilities that accept public funds to use to offset uncompensated care losses to ensure that the facility maximizes the number of patients with outstanding debt that is designated as satisfied pursuant to this bill. VIOLATIONS This bill provides that a facility found in violation of this b ill is subject to sanctions by the health facilities commission. ANNUAL REPORT This bill requires the department of health, in collaboration with the division of TennCare, to submit an annual report to the general assembly no later than January 15, 2026 , and by each January 15 thereafter. The report must include, at a minimum, a report on all expenditures in the previous calendar year for virtual disproportionate share hospital (DSH) payments and for payments to hospitals for uncompensated care to chari ty patients , as those categories of payments are defined in, the TennCare 1115 demonstration waiver from the federal centers for medicare and medicaid services.