Tennessee Code Title 68. Health, Safety and Environmental Protection § 68-1-902

(a) The medical care division, subject to supervision by the department of health, as provided in this part, shall administer and expend all funds appropriated by the general assembly or made available by allotment by the federal government to the state, or from contributions from counties, cities or other local units of government, or from other sources, appropriated, allotted or contributed for medical care in accordance with any future act of the general assembly or the congress of the United States, having as its object the inauguration of a state or national program of medical care.

(b) It is the duty of the state treasurer, whenever funds are available for carrying out this part, to set up in the state treasury a separate fund to be known as the “medical care fund,” and credit to the fund all appropriations, allotments or contributions, from whatever source specially designated and identified as funds for medical care or medical service, in accordance with the purpose specified in this part, and to preserve this separate fund for disbursement and expenditure solely and alone at the discretion of the commissioner of health, medical care division, in the manner provided by law.

(c) This section shall not apply to funds allocated for medical care where federal laws or regulations require administration by another state administrative unit.