RESOLUTION NO. RS2010-1159

A resolution requesting the Davidson County Delegation to the Tennessee General Assembly to support efforts to institute a hospital coverage fee in lieu of cuts to the TennCare program that would negatively affect the Metropolitan Hospital Authority’s funding for fiscal year 2011 and beyond.

WHEREAS, Nashville General Hospital, operated by the Metropolitan Hospital Authority (“the Authority”), is the critical safety-net provider for hospital care in Metro-Nashville; and

WHEREAS, the Authority is highly financially dependent on federal, state, and local sources of revenue; and

WHEREAS, the TennCare program accounts for 26% of the annual revenue of the Authority each year; and

WHEREAS, in fiscal year 2010, the Metropolitan Government provided an operating subsidy of $41.7 million to fund the Authority; and

WHEREAS, the State of Tennessee, by using these local funds as a match, generates an estimated $24 million annually in federal Medicaid matching funds for the TennCare program; and

WHEREAS, the proposed fiscal year 2011 operating budget for the State of Tennessee TennCare program includes several reimbursement reductions and service limitations that will severely limit state and federal funding to the Authority; and

WHEREAS, the Authority has stated that these proposed changes at the State level could cost the Authority as much as $11.7 million in fiscal year 2011; and

WHEREAS, the Tennessee Hospital Association has made the establishment of a hospital coverage fee a priority, which will restore these cuts and allow for further federal funds to be drawn down; and

WHEREAS, legislation establishing this hospital coverage fee is currently pending with the Tennessee General Assembly; and

WHEREAS, it is in the best interest of the citizens and taxpayers of Metropolitan Nashville and Davidson County that the hospital coverage fee be enacted in lieu of the proposed cuts to the TennCare program.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Metropolitan County Council hereby goes on record as requesting the Davidson County Delegation to the Tennessee General Assembly to support legislation creating a hospital coverage fee as proposed by the Tennessee Hospital Association.

Section 2. That the Metropolitan Clerk is directed to send a copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 3. That this Resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Erik Cole, Ronnie Steine, Jerry Maynard, Megan Barry

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee Health, Hospitals and Social Services Committee
Introduced:	March 16, 2010
Adopted:	March 16, 2010
Approved:	March 17, 2010
By: