The tax could range from 1 percent to 2 percent of a hospital’s annual gross revenue and would offset $500 million to $600 million in proposed cuts to TennCare, the state’s Medicaid managed care program. The TennCare cuts were included in Gov. Phil Bredesen’s budget proposal last week.
The tax would have to be approved by the state legislature and then by the federal government before it could go into effect. Details of the proposed fee have not been fleshed out, but at least 26 other states have similar funding mechanisms, according to the report.
Read The Commercial Appeal’s story on the hospital tax.
