Tennessee House Committee Approves Proposed Hospital Fee

A proposed 3.52 percent fee on Tennessee hospitals cleared the House Finance Committee on a bipartisan voice vote, according to a report in the Chattanooga Times Free Press.

The bill, intended to offset proposed cuts to TennCare, the state's version of Medicaid, would raise an estimated $310 million. The Tennessee Hospital Association proposed the hospital fee, arguing that proposed TennCare cuts would be devastating to hospitals, according to the report.

The bill's sponsor, House Health and Resources Committee Chairman Joe Armstrong, D-Knoxville, told lawmakers they needed to pass the law by next week because of federal requirements that the state notify TennCare enrollees about pending cuts to the program. The deadline for notification is next week, according to the report.

The Senate version of the bill is scheduled to come up for a floor vote this week.

Read the Chattanooga Times Free Press report on the proposed hospital fee.