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SB 2287

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.

114th Regular Session (2025-2026) Introduced by London Lamar

Tennessee bill equalizes Medicaid payments to birthing centers with hospitals and prioritizes federal rural health grants to birthing centers, expanding maternity care access in underserved areas.

Placed on Senate Health and Welfare Committee calendar for 3/17/2026
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Bill Summary · SB 2287

Legislative bill overview

SB 2287 requires Tennessee's Medicaid program (TennCare) to establish comparable reimbursement rates between birthing centers and hospitals for similar maternity services, and directs the Department of Health to prioritize federal rural health grants to birthing centers in rural and underserved counties. The bill aims to support alternative birthing facility infrastructure, particularly in areas with limited maternity care access.

Why is this important

Many rural Tennessee counties face maternity care deserts with hospital closures or limited obstetric services, forcing pregnant individuals to travel significant distances for delivery. Reimbursement rate parity and grant prioritization could incentivize birthing center development as an intermediate care option, potentially improving access while reducing pressure on already-strained rural hospital systems. This directly affects maternal health outcomes and healthcare equity in underserved regions.

Potential points of contention

  • Cost and budget impact: Comparable reimbursement rates may increase TennCare expenditures if birthing centers expand utilization, and fiscal appropriateness of prioritizing federal grants to specific facility types
  • Safety and liability concerns: Debate over whether birthing centers provide equivalent safety standards for high-risk pregnancies and which complications require hospital-level care; concerns about transport time in emergencies
  • Hospital competition: Rural hospitals may view this as redirecting patients and Medicaid funds away from their facilities, potentially threatening financial viability of already-struggling systems

Compiled from official sources — confirm details with the bill’s official record.

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