TennCare Hospital Fee Approved by the Feds

WPLN reports that Federal Officials have approved the so called “Bed Fee” that will help stave off cuts in TennCare.

The fee, the only revenue enhancement approved by the state legislature this session, imposes a 3.5% rate on net revenue generated by private hospitals for the benefit of the state’s public institutions.

The fee, which started gaining support in February, was sent to the Governor in May and went into effect yesterday, July 1st.

While the fee was originally proposed to help address funding shortfalls at the Regional Medical Center at Memphis, The MED, it eventually became a way to help maintain funding levels for uncompensated care at all the state’s publicly owned hospitals. The proposal gained even more traction in the face of proposed $201m cut in TennCare that, if enacted, likely would have put all publicly owned hospitals out of business.

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