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SB 2194

Hospitals and Health Care Facilities - As enacted, requires the attorney general, in making a decision as to whether to object to a public benefit hospital conveyance transaction, to consider whether the proceeds will be controlled as funds independently of the acquiring or related entities; makes certain exemptions. - Amends TCA Title 48, Chapter 68 and Title 68, Chapter 11.

114th Regular Session (2025-2026)

Tennessee hospitals must notify the attorney general 30 days before transferring control to enable state oversight of public benefit hospital ownership changes.

Pub. Ch. 718
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Bill Summary · SB 2194

Legislative bill overview

SB 2194 requires public benefit hospital entities in Tennessee to notify the state attorney general and a designated reporter at least 30 days before transferring ownership or control of the hospital through a "public benefit hospital conveyance transaction." The bill modifies Tennessee's hospital and healthcare facility regulations under state law.

Why is this important

Public benefit hospitals often serve vulnerable populations and receive special tax status due to their charitable missions. Requiring advance notice gives state oversight authorities time to review whether proposed ownership changes will maintain the hospital's public benefit obligations, potentially protecting community healthcare access and ensuring accountability for these tax-advantaged entities.

Potential points of contention

  • Definitional clarity: The bill references "public benefit hospital conveyance transaction" but the definition and scope of what constitutes such a transaction may be ambiguous, creating uncertainty for hospitals and enforcement challenges
  • Implementation burden: The 30-day notice requirement adds regulatory oversight that hospitals may argue creates delays in time-sensitive transactions or discourages beneficial partnerships
  • Attorney general authority: The bill doesn't explicitly detail what review power or intervention authority the attorney general gains from notification, raising questions about whether this is merely informational or creates blocking power

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

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