This bill, called the "Delivering Support for Hospitals in Tennessee Act," permanently restores federal Medicaid funding for Tennessee hospitals that serve large numbers of uninsured and low-income patients. Starting in fiscal year 2026, Tennessee will receive an annual disproportionate share hospital (DSH) allotment—a special federal payment to hospitals—based on what the state received in 2015, adjusted each year for inflation. The funding applies to all succeeding fiscal years, removing previous caps or limits on Tennessee's hospital support. This change affects Tennessee hospitals that provide substantial care to Medicaid patients and uninsured individuals, ensuring they receive ongoing federal support to offset costs for caring for vulnerable populations. The bill essentially reverses a previous reduction in Tennessee's hospital funding by restoring the state to a "low DSH state" status, which qualifies it for predictable, inflation-adjusted federal payments going forward.
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