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TennesseeSB 2431114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, Title 33; Title 63 and Title 68, relative to health facility regulation.

Sponsored By: Sponsor information unavailable

Signed by Governor

Health Care

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 2 benefits, 1 costs, 6 mixed.

Health project applicants get faster data

Beginning July 1, 2026, the health commissioner must set conditions for public access to processed and verified health data. The commissioner must also create policies for limited-use data sets that follow federal health privacy rules. Those policies must provide requested data to the commission for certificate-of-need applicants within 7 days after its request.

Nursing homes face an inspection deadline

The Tennessee Health Facilities Commission must ensure every covered nursing home has a recent inspection by December 31, 2028. The most recent inspection must be dated no more than 15 months before December 30, 2028. This requirement does not set an ongoing inspection schedule.

Health facilities can face new charges

Beginning July 1, 2026, the commission can charge applicants or licensees actual, reasonable costs of required initial-license or renewal visits. Charges can cover reviewer time, travel, lodging, and facility and personnel costs. It must send the final assessment by certified and regular mail within 60 days after the visit; no dollar cap is specified. Sanctioned licensees can also owe actual, reasonable investigation and prosecution costs, including staff, hearing, witness, transcript, and legal costs. The disciplinary order must set a maximum, and the final assessment cannot exceed it or arrive later than 60 days after the order takes effect.

Health facility moves face access safeguards

Beginning July 1, 2026, the executive director can exempt existing facilities or approved services from certificate-of-need review when they relocate. At least 95% of expected patients must live in the existing patient population’s ZIP codes, with no increased commercial-insurance share. Moves require commission notice and cannot reduce access, especially for underserved groups, uninsured or underinsured people, women, racial and ethnic minorities, Medicaid recipients, and low-income people. Home health agencies and hospices need no certificate of need to move their main office within their licensed service area. Approved but unimplemented projects qualify for a relocation exemption only within one mile of the approved site.

Health regulators face conflict disclosure rules

Beginning July 1, 2026, commission members and employees with a direct interest generally must immediately report it and step aside. They cannot deliberate, recommend, testify, or vote on that matter. Exceptions allow participation after public acknowledgment for specified employment ties or ownership or control interests below 5%. The person or relative must not have worked on the matter for an involved party or hold a listed leadership role. Indirect interests must also be publicly acknowledged unless the person steps aside.

More health services face licensing oversight

Beginning July 1, 2026, the commission can license and regulate burn units, newborn intensive care units, and MRI and PET services. Covered newborn intensive care units are at institutions licensed as Level II, III, or IV. MRI and PET services used for non-diagnostic purposes do not need a license under this part.

Provider discipline gains private review options

The commission and covered health boards lacking this power can use screening panels and administer oaths in disciplinary reviews. Parties can decline participation or an offer without penalty; panel, mediation, and arbitration sessions remain confidential. Panel documents stay outside public-record access until charges are filed. The commission can also use nonpublic discipline through rules; emergency rulemaking begins upon enactment, while most substantive changes begin July 1, 2026. A separate health-facility procedural period increases from 5 to 10 working days; the supplied text does not identify its purpose.

Rural hospitals get designation review rules

Beginning July 1, 2026, the commission can determine critical access hospital eligibility as permitted by Medicare’s Rural Hospital Flexibility Program. Proposals require published notice at least twice within 15 days in the proposed hospital’s county and neighboring counties. Licensed hospitals in those counties can file written objections within 30 days after the last notice. The executive director issues a written determination, with proof of publication, for commission review. This process does not guarantee designation.

Scan providers face deadlines, gain accreditor options

Beginning July 1, 2026, outpatient diagnostic centers must get accreditation within two years after receiving a certificate of need. Accreditation must cover every machine and diagnostic type offered. PET providers established without a certificate of need must submit proof covering their scan types within two years after licensure. Accreditors must be nationally recognized and approved by the Centers for Medicare & Medicaid Services; this also replaces two named options for one exemption. Missing these deadlines, including deadlines under applicable certificate-of-need exemptions, is grounds for license sanctions.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 132 • No: 4

Senate vote • 4/21/2026

FLOOR VOTE: as Amended Third Consideration 4/21/2026

Yes: 32 • No: 0

House vote • 4/21/2026

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/21/2026

Yes: 80 • No: 4

Senate vote • 4/15/2026

SENATE FINANCE, WAYS AND MEANS COMMITTEE

Yes: 11 • No: 0

Senate vote • 4/1/2026

SENATE HEALTH AND WELFARE COMMITTEE

Yes: 9 • No: 0

Actions Timeline

  1. Effective date(s) 05/22/2026, 07/01/2026

    5/27/2026

  2. Pub. Ch. 1136

    5/27/2026

  3. Signed by Governor.

    5/22/2026Senate

  4. Transmitted to Governor for action.

    5/11/2026Senate

  5. Signed by H. Speaker

    5/7/2026House

  6. Signed by Senate Speaker

    4/30/2026Senate

  7. Enrolled and ready for signatures

    4/29/2026Senate

  8. Passed H., Ayes 80, Nays 4, PNV 2

    4/21/2026House

  9. Am. withdrawn. (Amendment 1 - HA0945)

    4/21/2026House

  10. Subst. for comp. HB.

    4/21/2026House

  11. Engrossed; ready for transmission to House

    4/21/2026Senate

  12. Passed Senate as amended, Ayes 32, Nays 0

    4/21/2026Senate

  13. Senate adopted Amendment (Amendment 1 - SA0978)

    4/21/2026Senate

  14. Placed on Senate Regular Calendar for 4/21/2026

    4/17/2026Senate

  15. Placed on Senate Regular Calendar for 4/21/2026

    4/17/2026Senate

  16. Recommended for passage, refer to Senate Calendar Committee

    4/15/2026Senate

  17. Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2026

    4/14/2026Senate

  18. Action deferred in Senate Finance, Ways, and Means Committee to 4/15/2026

    4/14/2026Senate

  19. Placed on Senate Finance, Ways, and Means Committee calendar for 4/14/2026

    4/8/2026Senate

  20. Action deferred in Senate Finance, Ways, and Means Committee to 4/14/2026

    4/8/2026Senate

  21. Placed on Senate Finance, Ways, and Means Committee calendar for 4/8/2026

    4/1/2026Senate

  22. Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 9, Nays 0 PNV 0

    4/1/2026Senate

  23. Placed on Senate Health and Welfare Committee calendar for 4/1/2026

    3/25/2026Senate

  24. Reset on Final calendar of Senate Health and Welfare Committee

    3/18/2026Senate

  25. Placed on Senate Health and Welfare Committee calendar for 3/18/2026

    3/17/2026Senate

Bill Text

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