Senate Bill 403 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 that defines "uncompensated care" and mandates that facilities accepting public funds for such care must designate an equivalent amount of outstanding patient debt as satisfied. Consequently, these facilities are prohibited from pursuing legal action to collect the designated debt and must notify patients of the debt satisfaction, including any remaining balance due.

Additionally, the bill requires the health facilities commission to establish rules to optimize the designation of satisfied debts and imposes sanctions on facilities that violate these provisions. It also mandates 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, starting January 15, 2026.

Statutes affected:
Introduced: 68-1-109