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SB 1198

Hospitals and Health Care Facilities - As enacted, declares Perry County Community Hospital in Linden and Decatur County General Hospital in Parsons to be necessary providers for the purpose of critical access hospital designation eligibility in accordance with Section 1820 of the Social Security Act. - Amends TCA Title 68.

114th Regular Session (2025-2026) Introduced by Ed Jackson

Tennessee designates two rural county hospitals as "necessary providers" eligible for Critical Access Hospital federal funding to sustain rural emergency care access.

Comp. became Pub. Ch. 196
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Bill Summary · SB 1198

Legislative bill overview

SB 1198 designates Perry County Community Hospital in Linden and Decatur County General Hospital in Parsons as "necessary providers" under federal law, making them eligible for Critical Access Hospital (CAH) status. This designation allows these rural facilities to access federal Medicare funding and operational flexibilities designed specifically for small, geographically isolated hospitals.

Why is this important

Critical Access Hospital designation provides rural facilities with cost-based Medicare reimbursement (rather than diagnosis-based payment), allowing them to operate sustainably despite low patient volumes. For Perry and Decatur counties—both economically challenged rural areas—maintaining these hospitals is critical for local emergency care access and community health infrastructure.

Potential points of contention

  • Federal eligibility questions: The bill declares these hospitals "necessary providers," but federal CMS rules have specific geographic and bed-count criteria; this state-level declaration doesn't automatically override federal requirements, creating potential implementation ambiguity
  • Sustainability concerns: CAH status addresses payment models but doesn't solve underlying issues like provider recruitment, aging populations, or declining patient volumes in these counties
  • Broader rural healthcare policy: This facility-specific approach raises questions about whether targeted legislative fixes are the best long-term solution versus comprehensive rural healthcare policy reform

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

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