Tennessee: House committee approves hospital fee

NASHVILLE - A proposed 3.52 percent fee on hospitals, which would raise an estimated $310 million, whisked through the House Finance Committee Tuesday on a voice vote.

Rep. Joe Armstrong, D-Knoxville, the House bill's sponsor, told Finance Committee members that the bill, which is largely intended to offset the Bredesen administration's proposed and existing TennCare cuts, is "allowing hospitals to take the place of the state" on some of the state's share of funding TennCare.

"They (hospitals) are proposing a 3.52 percent fee on their net revenues," he said. "A lot of hospitals will not pay this. This allows us (state) to draw down federal matching dollars."

He said the fee will restore about $700 million in cuts to TennCare.

The cuts include a proposed $10,000 annual cap on state reimbursements to hospitals for adult TennCare enrollee's hospital stays. Hospitals are expected to eat the losses.

For complete details, see tomorrow's Times Free Press.

Upcoming Events