Tennessee Hospital Assessment Holds Up State Budget Approval

Tennessee legislators are unable to agree on whether to renew an assessment on Tennessee hospitals' net patient revenue, holding up approval of the state's budget, according to a Commercial Appeal report.

Democrats have not yet taken a stand on the assessment, which the legislature enacted last year at the rate of 3.52 percent. Republicans support renewing the assessment and raising it to 4.52 percent, according to the report.

The Tennessee Hospital Association supports the assessment, which generates funds for the state's Medicaid program, TennCare. The assessment generates federal matching funds which are then recouped by hospitals through reimbursements.

Republicans could pass the legislation in both the House and Senate without support from Democrats, but Senate Republican Majority Leader Mark Norris said that is not the preferred route, according to the report.

Read the Commercial Appeal report on the Tennessee hospital assessment.

Read more coverage on hospital assessments:

- Tennessee Hospitals Ask Governor to Extend, Raise Assessment Fee to Avoid TennCare Cuts

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