Health Care - As introduced, requires TennCare to create a methodology to make medicaid facility fee reimbursement rates for birthing centers comparable to rates for similar services provided at a hospital; requires the department of health to give priority to allocating federal rural health transformation program grant funds to birthing centers in rural counties and urban counties that serve residents of rural counties. - Amends TCA Title 68 and Title 71.

HB 2597 requires Tennessee's Medicaid program (TennCare) to set payment rates for birthing centers to match hospital rates for similar services, with annual increases aligned to hospital rate changes. It also directs the Tennessee Department of Health to prioritize federal grant funds for birthing centers in rural counties and for urban centers serving rural residents without nearby birthing options. This bill directly affects birthing centers, particularly in rural areas, by altering their Medicaid payment structure and federal grant eligibility. The key mechanisms are the rate comparability requirement and the funding priority system for rural maternal care access.