House Bill 435 amends various sections of the Tennessee Code Annotated to address healthcare costs, specifically focusing on uncompensated care provided by healthcare facilities. The bill introduces a new section in Title 68, Chapter 11, Part 2, defining "uncompensated care" as healthcare services rendered without payment. It mandates that facilities accepting public funds for losses due to uncompensated care must designate an equivalent amount of outstanding patient debt as satisfied, prohibiting them from pursuing collection on that debt. Additionally, facilities are required to notify patients of the debt satisfaction and provide instructions for any remaining balance. The health facilities commission is tasked with creating rules to ensure facilities maximize the designation of satisfied debts.

Furthermore, the bill adds a new subsection to Section 68-1-109, requiring the Department of Health, in collaboration with the division of TennCare, to submit an annual report to the General Assembly detailing expenditures related to virtual disproportionate share hospital payments and payments for uncompensated care to charity patients. This report is to be submitted by January 15 of each year, starting in 2026. The act is set to take effect upon becoming law, emphasizing the public welfare.

Statutes affected:
Introduced: 68-1-109