DSH in Tennessee Act

S 3299, the "DSH in Tennessee Act," permanently restores federal funding for hospitals in Tennessee that serve many low-income patients, directly affecting those hospitals. For fiscal year 2026, it sets Tennessee's funding level equal to its 2015 amount, adjusted annually for inflation using the consumer price index. Starting in 2027, Tennessee will be treated as a "low DSH state," receiving annual funding increases based on the same inflation adjustment used for similar states. This bill specifically changes how Tennessee's Medicaid Disproportionate Share Hospital (DSH) funding is calculated and allocated.