Major Healthcare Investments and Policy Priorities in Tennessee
Governor Lee’s State of the State Highlights Major Healthcare Investments and Policy Priorities
On Tuesday, Governor Bill Lee delivered his annual State of the State address, outlining a significant slate of investments and policy priorities aimed at strengthening Tennessee’s healthcare system and improving access to care across the state—particularly in rural communities.
Healthcare remains a cornerstone of Tennessee’s economic vitality, workforce stability, and community well-being. The Governor’s proposed budget reflects a continued emphasis on shoring up critical services, addressing workforce shortages, and modernizing delivery models to meet growing demand.
Key Healthcare Budget Highlights
- $205 million utilizing Shared Savings to strengthen healthcare statewide, including funding for Rural Health Transformation Resiliency Grants
- $230 million for TennCare to cover increasing costs associated with medical inflation, including higher prescription drug prices and Medicare payments
- $34.5 million for the Department of Children’s Services (DCS) to reduce caseload ratios
- $10.7 million to enhance staff safety at DCS facilities serving delinquent youth
- $24.2 million to continue the Department of Health Dental Pilot Program, aimed at addressing unmet dental service needs and increasing the number of dentists practicing in Tennessee
- $15 million for capital project and maintenance grants to YMCAs across the state
Collectively, these investments reflect a focus on stabilizing provider networks, expanding access to care, and improving outcomes for vulnerable populations.
Governor’s Policy Priorities
In addition to budget proposals, Governor Lee reiterated his intent to pursue:
- Expansion of Scope of Practice for mid-level providers
- Completion of Certificate of Need (CON) reform
Healthcare Legislation to Watch
Several healthcare-related bills filed for consideration this session may also have broad policy and operational impacts:
- SB1767/HB1852 – Tennessee mRNA Pharmaceutical Sovereignty and Safety Act: Prohibits individuals, including healthcare and veterinary providers, from administering vaccines or injectable solutions containing mRNA vaccine material.
- SB2010/HB1866 – Regulate Artificial Intelligence (AI) in Health Care Act: Establishes regulatory parameters for the use of artificial intelligence in healthcare settings.
- SB2040/HB1949 – Freedom, Access, and Integrity in Registered Pharmacy (FAIR Rx) Act: Addresses pharmacy operations and regulatory standards.
Looking Ahead
The Tennessee Chamber will continue monitoring these budget proposals and legislative initiatives as they move through the General Assembly. Each carries important implications for employers, healthcare providers, and the broader business community.
As always, we remain committed to advocating for policies that support a strong healthcare workforce, encourage innovation, and ensure Tennesseans have access to high-quality, affordable care.