Delivering Support for Hospitals in Tennessee Act; DSH in Tennessee Act
Summary
The "Delivering Support for Hospitals in Tennessee Act" aims to amend Title XIX of the Social Security Act, specifically concerning disproportionate share hospital (DSH) allotments. The bill seeks to provide a permanent DSH allotment to Tennessee beginning in fiscal year 2026. This allotment would be calculated based on the 2015 DSH allotment, adjusted annually for inflation using the Consumer Price Index for all urban consumers.
Expected Effects
If enacted, this bill would ensure that Tennessee receives a consistent and predictable stream of federal funding to support hospitals that serve a large number of low-income patients. It would also classify Tennessee as a low DSH state for future allotment adjustments. This could impact the overall healthcare landscape in Tennessee by providing financial stability to hospitals serving vulnerable populations.
Potential Benefits
- Provides financial stability to Tennessee hospitals serving low-income populations.
- Ensures consistent DSH funding for Tennessee, starting in fiscal year 2026.
- Adjusts the DSH allotment for inflation, maintaining its real value over time.
- Potentially improves access to healthcare for low-income individuals in Tennessee.
- Simplifies the DSH allotment process for Tennessee by establishing a permanent formula.
Most Benefited Areas:
Potential Disadvantages
- May create a precedent for other states to seek similar permanent DSH allotments, potentially straining federal resources.
- The formula based on the 2015 allotment may not accurately reflect current healthcare needs in Tennessee.
- Classifying Tennessee as a low DSH state could limit future funding increases beyond inflation adjustments.
- May not address underlying issues contributing to hospitals becoming disproportionate share hospitals.
- Could reduce incentives for Tennessee to improve its healthcare system efficiency.
Constitutional Alignment
The bill falls under the purview of Congress's power to tax and spend for the general welfare, as outlined in Article I, Section 8 of the Constitution. Specifically, it relates to providing financial assistance to states for healthcare, which is a permissible use of federal funds. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).