Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
:•(r<--:,:(A ~~~= •:
: ~\\ :
State efJetUtMS~
PUBLIC CHAPTER NO. 252
SENATE BILL NO. 576
By Haile, Jackson
Substituted for: House Bill No. 829
By Gary Hicks, Sherrell, White, Grills
AN ACT to amend Tennessee Code Annotated, Title 71, Chapter 5, relative to the annual coverage
assessment.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated,· Section 71-5-2001, is amended by deleting the
language "Annual Coverage Assessment Act of 2024" and substituting "Annual Coverage Assessment
Act of 2025".
SECTION 2. Tennessee Code Annotated, Section 71-5-2002(2)(C), is amended by deleting
the language "as shown in its certificate of need application filed with the health facilities commission"
and substituting "as shown in its certificate of need application or equivalent financial report filed with
the health facilities commission or other agency that has issued a license to the hospital to operate in
this state".
SECTION 3. Tennessee Code Annotated, Section 71-5-2002(7), is amended by deleting from
subdivisions (A) and (F) the language "July 1, 2024" and substituting "July 1, 2025".
SECTION 4. Tennessee Code Annotated, Section 71-5-2003(a), is amended by deleting the
language "fiscal year (FY) 2024-2025" and substituting "fiscal year (FY) 2025-2026".
SECTION 5. Tennessee Code Annotated, Section 71-5-2003(c), is amended by deleting the
language "FY 2024-2025" wherever it appears and substituting "FY 2025-2026".
SECTION 6. Tennessee Code Annotated, Section 71-5-2003(d)(1 )(A), is amended by deleting
the language "July 1, 2024" wherever it appears and substituting "July 1, 2025".
SECTION 7. Tennessee Code Annotated, Section 71-5-2003, is amended by adding the
following as a new subsection:
(e) Notwithstanding this part, if the CMS determination, approvals, and confirmation set
forth in subsection (b) have all been obtained except for the approval described in subdivision
(b)(1)(B), then the assessment authorized by this section is implemented and imposed as set
forth in this part.
SECTION 8. Tennessee Code Annotated, Section 71-5-2004(c), is amended by deleting the
subsection and substituting:
(c) The annual coverage assessment must be paid in installments . pursuant to this
•subsection (c) if the requirements of§ 71-5-2003(b) have been satisfied. The division shall
establish a schedule of equal installment payments spread as evenly as possible throughout
FY 2025-2026 with each installment payment due fifteen (15) days after the FY 2025-2026
directed payments approved by CMS to offset unreimbursed division costs have been made
to hospitals.
SECTION 9. Tennessee Code Annotated, Section 71-5-2004(f), is amended by deleting the
subsection and substituting:
SB 576
(f) If a covered hospital ceases to operate or changes status to be an excluded
hospital between July 1, 2025, and June 30, 2026, then the hospital's total annual coverage
assessment is equal to its annual coverage assessment base multiplied by a fraction, the
denominator of which is the number of calendar days from July 1, 2025, until July 1, 2026,
and the numerator of which is the number of days from July 1, 2025, until the date the health
facilities commission has recorded as the date that the hospital changed status or ceased
operation.
SECTION 10. Tennessee Code Annotated, Section 71-5-2004(h), is amended by deleting
the language "July 1, 2025" wherever it appears and substituting "July 1, 2026"; and deleting the
language "July 1, 2024" and substituting "July 1, 2025".
SECTION 11. Tennessee Code Annotated, Section 71-5-2004, is amended by deleting from
subsection 0) the language "this subsection O)" and substituting "this subsection (k)"; deleting from
subdivision (k)(2)(A)(iv) the language "under subdivisions (k)(2)(A)(ii) and (iii)" and substituting
"under subdivisions (/)(2)(A)(ii) and (iii)"; deleting from subdivision (k)(2)(A)(vi) the language "this
subdivision (k)(2)11 and substituting "this subdivision (/)(2)"; deleting from subdivision (k)(2)(8) the
language "this subdivision (k)(2)" and substituting "this subdivision (/)(2)"; deleting from subdivision
(k}(2)(C) the language "this subdivision (k)(2)" and substituting "this subdivision (/)(2)"; deleting from
subdivision (k)(3) the language "set forth in subdivision (k)(1) or (k)(2)" and substituting "set forth in
subdivision (/)(1) or (/)(2)"; and inserting the following as a new subsection (i) and redesignating the
existing subsection (i) and subsequent subsections accordingly:
(i) If the status of a hospital excluded under the definition in § 71-5-2002(7)(E)
changes to meet the definition of a covered hospital, and if such hospital contributed an
intergovernmental transfer, then the intergovernmental transfer and assessment obligations
must be applied to such hospital proportionally based on the length of time the hospital met
each of the respective definitions.
SECTION 12. Tennessee Code Annotated, Section 71-5-2005(c), is amended by deleting
from subdivision (1) the language "June 30, 2024" and substituting "June 30, 2025"; and adding the
following sentence to the end of subdivision (5):
The intergovernmental transfer amount is determined on the proportion of a hospital's
medicaid days and total outpatient payments as reported on the 2021 JAR.
SECTION 13. Tennessee Code Annotated, Section 71-5-2005(d)(1), is amended by deleting
the language "funding for FY 2024-2025" and substituting "funding for FY 2025-2026".
SECTION 1f Tennessee Code Annotated, Section 71-5-2005(d)(1)(D), is amended by
deleting the language "appropriation for FY 2024-2025" and substituting "appropriation for FY 2025-
2026".
SECTION 15. Tennessee Code Annotated, Section 71-5-2005(d)(1 )(J), is amended by
deleting the subdivision and substituting:
(J) In the total amount of five hundred ninety-eight thousand nine hundred forty-five
dollars ($598,945) to maintain reimbursement at the same emergency care rate as in FY
2024~2025 for nonemergent care to children twelve (12) to twenty-four (24) months of age;
SECTION 16. Tennessee Code Annotated, Section 71-5-2005(d)(1)(K), is amended by
deleting the language "two million one hundred eleven thousand four hundred dollars ($2, 111 ,400)"
and substituting "two million one hundred forty thousand six hundred twenty dollars ($2, 140,620)".
SECTION 17. Tennessee Code Annotated, Section 71-5-2005(d)(1)(N), is amended by
deleting the language "as of June 30, 2024" and substituting "as of June 30, 2025".
SECTION 18. Tennessee Code Annotated, Section 71-5-2005(d)(2)(A), is amended by
deleting the langu~ge "FY 2024-2025" and substituting "FY 2025-2026".
SECTION· 19. Tennessee Code Annotated, Section 71-5-2005(d)(2)(8), is amended by
deleting the language "FY ;2024-2025" wherever it appears and substituting "FY 2025-2026";
deleting the language "no less than thirty-seven percent (37% )" and substituting "no less than thirty-
six percent (36% )"; and deleting the language "2022 JAR" wherever it appears and substituting
"2023 JAR".
SECTION 20. •Tennessee Code Annotated, Section 71--5-2005(d)(2)(H), is amended by
deleting • the language "pursuant to § 71-5-2004(k)(2)" and substituting "pursuant to § 71-5-
2004(/)(2)".
2
SB 576
SECTION 21-. Tennessee Code Annotated, Section 71-5-2005(d)(3), is amended by deleting
the subdivision and substituting:
(3) Administrative funding to the division for six (6) full-time state employees to assist
with implementation, operationalization, and ongoing management of hospital payment
programs in the amount of three hundred eighty-two thousand four hundred dollars
($382,400) and funding for a program manager contract in the amount of one million six
hundred thousand dollars ($1,600,000); and
SECTION 22. Tennessee Code Annotated, Section 71-5-2005(9), is amended by deleting
the language "September 1, 2024" and substituting "September 1, 2025".
SECTION 23. Tennessee Code Annotated, Section 71-5-2005, is amended by adding the
following as a new subsection:
(i) Notwithstanding this section, • if the assessment authorized by this part is
implemented pursuant to § 71-5-2003(e), then the expenditures for directed payments to
hospitals set fort_h in subdivision (d)(2) must oe limited to either the same amount authorized
for FY 2024, as established ·in 2023 Public Chapter 232, or a greater amount as determined
by the division in consultation with the Tennessee Hospital Association, up to the amount
approved by CMS, until such time as the CMS determination, approvals, and confirmation
outlined in § 71-5-2003(b) have been obtained and the division provides written notice to the
Tennessee Hospital Association pursuant to§ 71-5-2003(b).
SECTION 24. Tennessee Code Annotated, Section 71-5-2006, is amended by deleting the
language "This part expires on July 1, 2025" and substituting "This part expires on July 1, 2026".
SECTION 25. This act takes effect at 11 :59 p.m. on June 30, 2025, the public welfare
requiring it.
3
SENATE BILL NO. 576
PASSED: April 14, 2025
~ ,.ll-u ~~ ~"- ~ 1: ,__,
RANDY N II n,nru.. L. 1
SPEAKER OF THE SENATE
c_.7
CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
/\pr; I APPROVED this ~Y.. day of 2025
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.