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Notice of Change to the TennCare III Demonstration
Distribution of Uncompensated Care Funds
The Commissioner of the Tennessee Department of Finance & Administration is providing official notification of a planned change to the TennCare demonstration. This change involves modifications to TennCare’s distribution of uncompensated care payments to hospitals. TennCare is publishing this notice pursuant to the terms and conditions of the TennCare demonstration in order to solicit public input on this planned change.
Since 2016, the TennCare demonstration has included a Virtual DSH Fund and an Uncompensated Care Fund for Charity Care (also referred to as the “Charity Care Pool”). Monies from these funds are used to support Tennessee hospitals by helping to offset costs associated with providing uncompensated care. TennCare distributes funds from the Virtual DSH Fund and the Charity Care Pool to qualifying hospitals according to an established distribution methodology.
TennCare is providing public notice of its intent to modify its distribution methodology for uncompensated care payments to reflect updates for State Fiscal Year 2026. This change will become effective May 11, 2026.
The implementation of this change is not expected to result in an increase in TennCare expenditures.
The full public notice associated with these changes is available on the TennCare website at https://www.tn.gov/content/dam/tn/tenncare/documents2/NoticeOfChangeToTheTennCareIIIDemonstrationUncompensatedCarePayments.pdf.
Members of the public who wish to comment on these proposed changes may send written comments by mail to Mr. Aaron Butler, Director of Policy, Division of TennCare, 310 Great Circle Road, Nashville, Tennessee 37243, or by email to public.notice.tenncare@tn.gov. Persons wishing to review copies of written comments received may submit their requests to the same email and/or physical address. In order to be considered prior to implementation of these changes, feedback must be received no later than April 9, 2026.
Copies of this notice will be available in each county office of the Tennessee Department of Health for the duration of the public notice and comment period.
We do not treat people in a different way because of their race, color, birth place, language, age, disability, religion, or sex. https://www.tn.gov/tenncare/members-applicants/civil-rights-compliance.html