S. 3299: Delivering Support for Hospitals in Tennessee Act

This bill, titled the Delivering Support for Hospitals in Tennessee Act, aims to amend the Social Security Act to establish a permanent allotment for Disproportionate Share Hospitals (DSH) in Tennessee for the fiscal year 2026 and for each year thereafter. Here is a breakdown of what the bill entails:

Permanent DSH Allotment

The bill specifically states that:

• Tennessee will receive a designated allotment under the DSH provisions of the Social Security Act starting in fiscal year 2026.
• This amount will be based on Tennessee's DSH allotment from fiscal year 2015, with adjustments made annually based on the consumer price index (CPI) for urban consumers.

Increased Funding Based on Economic Index

The DSH allotment for future years will automatically increase each year according to changes in the CPI, ensuring that the funding keeps pace with economic conditions.

Treatment as a Low DSH State

After the initial year, Tennessee will be classified as a "low DSH state," which allows it to benefit from DSH allotments that are increased similarly to those allocated to other low DSH states. This classification is important as it could lead to additional funding mechanisms in the future.

Operational Importance

This amendment is significant because DSH funding is provided to hospitals that serve a large number of low-income patients, and it plays a critical role in the financial stability of those institutions. By ensuring a permanent funding mechanism, the bill aims to strengthen healthcare access in Tennessee.

Impact and Oversight

The bill will likely be overseen by the Senate Committee on Finance, which is responsible for matters related to taxation and other revenue-raising measures, as well as social security and health programs.

Implementation Timeline

The changes proposed in this bill would become effective in the fiscal year 2026, establishing a new baseline for DSH funding in Tennessee moving forward.

Relevant Companies

• HCA Healthcare (HCA) - As a large healthcare provider operating numerous hospitals in Tennessee, HCA Healthcare could benefit significantly from increased DSH funding, enhancing its financial resources for serving low-income patients.
• UnitedHealth Group (UNH) - With extensive operations related to Medicaid and Medicare, changes in DSH funding may impact UnitedHealth’s financial dynamics in Tennessee, particularly regarding reimbursement rates for hospitals.