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Hospitals may ask TN to tax them

The Tennessean, February 8, 2010

Some Tennessee hospitals are considering paying more taxes to head off steep cuts to TennCare that could take more than $1.5 billion from the state's medical system. Representatives for the hospital industry have suggested bringing back the hospital tax, which expired in 1994 when TennCare was created, to reduce or stave off cuts in state funding proposed by Gov. Phil Bredesen. Those cuts would save the state $380 million, according to one analysis. But they would cost Tennessee two to three times as much in federal aid, amplifying the effect on hospitals and other healthcare providers far beyond the state's savings, The Tennessean reports.