The Delivering Support for Hospitals in Tennessee Act would restore and permanently guarantee federal funding to Tennessee hospitals through the Medicaid "disproportionate share hospital" (DSH) program, which helps reimburse hospitals that serve large numbers of low-income and uninsured patients. Starting in fiscal year 2026, Tennessee would receive a DSH allotment equal to what it received in 2015, with annual increases tied to inflation, and would thereafter be treated as a "low DSH state" under Medicaid rules to ensure continued annual funding adjustments. The bill essentially reverses a previous reduction in Tennessee's hospital funding and locks in permanent support going forward. The legislation was introduced by a bipartisan group of Tennessee House members and referred to the Committee on Energy and Commerce. While no specific dollar amount is cited in the bill text, the funding would come from existing Medicaid appropriations and would benefit hospitals throughout Tennessee that serve vulnerable patient populations.
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