NASHVILLE – If Tennessee Hospital Association directors can reach consensus on a self-imposed fee to help offset the latest round of TennCare cuts, House Speaker Kent Williams says he is willing to consider it.
“I think we need to concentrate on finding a long-term solution,” Rep. Williams, a Carter County Republican, said as he downplayed the possible use of reserves to help hospitals. “And I think the hospital association has a good plan if we can get that accomplished. I know some members may have a problem with voting for legislation because it is a tax.”
But “if the hospitals want to tax themselves, that’s fine with me, especially with the draw down of federal dollars we could get,” he said.
Tennessee Hospital Association officials say hospitals face cumulative cuts of $529 million under TenncCare cuts made last year and those proposed this year by Gov. Phil Bredesen to the 2010-2011 budget.
Rep. Williams said he is hearing hospitals are considering a $150 million to $200 million tax or fee on themselves to draw down federal matching dollars. The federal government normally contributes $2 for every $1 the state puts into TennCare, the state’s version of Medicaid. During the recession and its aftermath, the match has increased to $3.