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Officials: TennCare cuts may close some hospitals

By: Associated Press | TriCities.com
Published: February 08, 2010

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Health care officials say Gov. Phil Bredesen's proposed cuts to the state's expanded Medicaid program would cost state hospitals hundreds of millions of dollars and may force some of them to shut down.

The Democratic governor has said he needs to slash $201 million from TennCare to balance a $28.41 billion state budget. The TennCare reduction is part of $394 million in cuts to recurring spending plans.

Tennessee Hospital Association president Craig Becker estimates the loss to hospitals statewide will be about $540 million.

One main change is a $10,000 annual cap on inpatient care for adults, which state officials say will save $51 million.

TennCare spokeswoman Kelly Gunderson estimates about 5,600 enrollees may exceed the $10,000 cap annually, which she said represents less than 1 percent of TennCare's 1.2 million enrollees.