Hospitals are divided over a proposal to lessen the blow from impending cuts to TennCare by imposing a fee on hospitals.
Jim Brexler, president and CEO of Erlanger hospital, said the proposal might be the best way to keep more hospitals from suffering under deep cuts to reimbursements from the state’s Medicaid program.
“I think we should explore every option until we get to that, but … every hospital in the state will be adversely affected (by TennCare cuts) if we don’t put something back in place,” he said.
With the money from the proposed fee, state hospitals would be able to draw down federal matching funds, helping alleviate more financial pain.
The Tennessee Hospital Association says hospitals face about $526 million in TennCare cuts in the state budget that goes into effect July 1. The budget includes Gov. Phil Bredesen’s latest proposed cuts, announced this week, as well as those previously approved last year.