Tennessee Legislature (healthcare bills) · April 27, 2026 · Primary source
TN HB 1648: Auditing - As enacted, clarifies that, as of November 1, 2026, a non-governmental entity receiving in-kind funding from the state or a political subdivision of the state pursuant to the federal Public Health Service Act is eligible to qualify as a 340B entity, only if the entity is also a recipient of one or more state or federal grant awards that are subject to audit, reporting, and oversight requirements under state and federal law; authorizes the comptroller of the treasury and an
Summary
Tennessee enacted HB 1648 (Public Chapter 790), which establishes that, effective November 1, 2026, a non-governmental entity receiving only in-kind funding from the state or a political subdivision under the federal Public Health Service Act qualifies as a 340B entity only if it also receives one or more state or federal grant awards subject to audit, reporting, and oversight requirements. The law also authorizes the state comptroller and an unspecified audit authority to conduct oversight of such entities. This narrows 340B eligibility for certain covered entities in Tennessee.
What this may mean
Non-governmental entities in Tennessee that rely solely on in-kind public funding to establish 340B eligibility face a new eligibility condition: they must also hold at least one state or federal grant award subject to audit and oversight, effective November 1, 2026. Entities that do not meet the additional grant requirement by that date risk losing 340B covered-entity status and the associated drug pricing benefits.
Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.
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