Skip to main content
Thursday, October 29, 2026Oct 29

This story is free to read.

Bed fee helping save TennCare, Haslam says

NASHVILLE-Gov. Bill Haslam says his proposed $30.2 billion budget would have been far tougher to put together had not the hospital industry agreed to extend and expand an assessment fee on hospitals that will generate $450 million for TennCare.

The Republican governor said the 2011-12 budget that starts July 1 includes “real cuts” but added, “we would have had a much different-looking budget and our cuts to TennCare would have been a lot harder” without the Tennessee Hospital Association’s agreement.

Haslam spoke last week during a roundtable discussion with reporters after presenting his first budget to the Republican-controlled General Assembly.

Asked whether he thinks the fee extension is a “done deal” among lawmakers, Haslam said, “I think it is. I haven’t heard anybody yet bring up an alternative to that. I’d be surprised if it wasn’t, I’ll put it that way.”

An $8.69 billion program