Managed Care Organizations - As enacted, prohibits a managed care organization from including a provision in the managed care organization's contract with a qualified nursing facility to provide medicaid nursing facility services, that permit actual or constructive termination by the MCO without cause, for convenience, or termination without specifying the grounds for termination; requires the bureau of TennCare, in conjunction with the department of commerce and insurance, to review and approve all standard contract templates used by MCOs for facility contracting to ensure compliance. - Amends TCA Title 56; Title 68, Chapter 11 and Title 71, Chapter 5.

SB 1797 prohibits managed care organizations (MCOs) in Tennessee from unilaterally suspending, denying, terminating, or otherwise ending contracts with qualified nursing facilities participating in the TennCare program. The bill directly affects nursing homes certified to provide Medicaid nursing care and MCOs that contract with them. Key provisions require MCOs to report concerns about facility performance to the Bureau of TennCare (not to act independently), and grant the bureau exclusive authority to determine termination - only allowing MCOs to act if the bureau has authorized termination, suspended payments for fraud, or if the facility was excluded from Medicare/Medicaid. The bill ensures nursing facilities cannot be removed from TennCare networks without bureau approval, maintaining service continuity for Medicaid beneficiaries during reviews.