7 Chattanooga-based hospitals stand to lose $400 million [Chattanooga Times Free Press, Tenn.] - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
January 21, 2013 Newswires
Share
Share
Tweet
Email

7 Chattanooga-based hospitals stand to lose $400 million [Chattanooga Times Free Press, Tenn.]

Andy Sher, Chattanooga Times Free Press, Tenn.
By Andy Sher, Chattanooga Times Free Press, Tenn.
McClatchy-Tribune Information Services

Jan. 21--NASHVILLE -- The next nine years could prove tough financially for Chattanooga-based hospitals because of changes in federal reimbursements for patient care under the Affordable Care Act, an industry analysis projects.

Seven hospitals collectively stand to lose nearly $400 million in special Medicare and Medicaid reimbursements through 2021, according to Tennessee Hospital Association figures obtained by the Chattanooga Times Free Press.

The special payments are intended to compensate hospitals for the free care they provide to the uninsured. Hospitals have been counting on making up most if not all of the reductions by covering the uninsured through health insurance exchanges or an expanded Medicaid program.

Gov. Bill Haslam hasn't said if he will expand TennCare, the state's Medicaid program, to take in an estimated 182,000 low-income Tennesseans. The federal government would pick up the full cost of the expansion for the first three years, dropping to 90 percent in 2019 and thereafter.

Haslam has said expanding the program to cover people whose incomes are at 138 percent of the poverty level ($30,843 for a family of four) would be beneficial, but he has concerns over inflation and potential future cuts in the federal match.

TennCare officials estimate the state's cost at $200 million for the first 51/2 years and about $100 million a year afterward. Combined with federal matching funds, that would mean $1 billion annually for hospitals.

Haslam has said he'll let the federal government, rather than the state, get the health insurance exchange up and running next year.

Figures unclear

It's not clear exactly how much Chattanooga and other Tennessee hospitals would recoup from newly insured people under the exchanges, said David McClure, the Tennessee Hospital Association's senior vice president of finance.

Hundreds of thousands of Tennesseans would get coverage through the insurance exchange, which gives tax credits for individuals and families who earn less than 400 percent of the federal poverty level, about $92,000 for a family of four.

McClure said that when the national hospital industry agreed not to fight President Barack Obama's initiative, "the entire plan was that these [reimbursement reductions] would be given up on the front end and either the Medicaid expansion or the health care exchange would offset" the loss.

The THA calculates that the federal reimbursement cuts over the nine years will cost Chattanooga-based hospitals $393.41 million through 2021. Hospitals across the state would lose an estimated $4.26 billion, the THA figures show.

THA President Craig Becker has warned that some hospitals face closure without the Medicaid expansion and that rural hospitals will be hardest hit. The Tennessee Justice Center, an advocate for expanded health coverage, calculates that 21 hospitals could face closure. None is in Chattanooga.

Offsets from expansion

Erlanger Chief Financial Officer Britt Tabor emphasized in a statement that the THA estimates "reflect only the decreases in Medicare and Medicaid associated with" the Affordable Care Act.

"They do not include the positive offsets from the expansion of the Medicaid program, and the establishment of exchanges which would impact our current uninsured population.

"For the Erlanger Health System, this would be a significant positive number to offset the decreases," he said.

It would "not be positive" if Tennessee decides not to expand TennCare, Tabor said. On the other hand, some of the ACA cuts are based on Medicaid expansion.

"If Medicaid expansion does not occur, then some of the ACA cuts would likely not go into effect," he said.

But there's no guarantee that would happen.

Memorial President and CEO James M. Hobson said in a statement that health care providers must "remain focused on providing patients with a coordinated care pathway that provides the highest quality care at the lowest cost."

Siskin President and CEO Robert Main said the hospital is at a disadvantage now, already losing out on some types of Medicaid reimbursements.

Hospitals face other money woes down the pike.

An automatic 2 percent federal cut for hospital reimbursements triggered under the Budget Control Act of 2011 would cost Tennessee hospitals $767.58 million, industry projections show. The seven local hospitals collectively would lose $74.71 million.

And Congress is considering Medicare cuts that would impact Tennessee hospitals by some $2.1 billion, according to Tennessee Hospital Association estimates.

___

(c)2013 the Chattanooga Times/Free Press (Chattanooga, Tenn.)

Visit the Chattanooga Times/Free Press (Chattanooga, Tenn.) at www.timesfreepress.com

Distributed by MCT Information Services

Wordcount:  722

Advisor News

  • Study finds more households move investable assets across firms
  • Could workplace benefits help solve America’s long-term care gap?
  • The best way to use a tax refund? Create a holistic plan
  • CFP Board appoints K. Dane Snowden as CEO
  • TIAA unveils ‘policy roadmap’ to boost retirement readiness
More Advisor News

Annuity News

  • $80k surrender charge at stake as Navy vet, Ameritas do battle in court
  • Sammons Institutional Group® Launches Summit LadderedSM
  • Protective Expands Life & Annuity Distribution with Alfa Insurance
  • Annuities: A key tool in battling inflation
  • Pinnacle Financial Services Launches New Agent Website, Elevating the Digital Experience for Independent Agents Nationwide
More Annuity News

Health/Employee Benefits News

  • Providers fear illness uptick
  • JAN. 30, 2026: NATIONAL ADVOCACY UPDATE
  • Advocates for elderly target utility, insurance costs
  • National Health Insurance Service Ilsan Hospital Describes Findings in Gastric Cancer (Incidence and risk factors for symptomatic gallstone disease after gastrectomy for gastric cancer: a nationwide population-based study): Oncology – Gastric Cancer
  • Reports from Stanford University School of Medicine Highlight Recent Findings in Mental Health Diseases and Conditions (PERSPECTIVE: Self-Funded Group Health Plans: A Public Mental Health Threat to Employees?): Mental Health Diseases and Conditions
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Etiqa General Insurance Berhad
  • Life insurance application activity hits record growth in 2025, MIB reports
  • AM Best Revises Outlooks to Positive for Well Link Life Insurance Company Limited
  • Investors holding $130M in PHL benefits slam liquidation, seek to intervene
  • Elevance making difficult decisions amid healthcare minefield
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

8.25% Cap Guaranteed for the Full Term
Guaranteed cap rate for 5 & 7 years—no annual resets. Explore Oceanview CapLock FIA.

Press Releases

  • Financial Independence Group Marks 50 Years of Growth, Innovation, and Advisor Support
  • Buckner Insurance Names Greg Taylor President of Idaho
  • ePIC Services Company and WebPrez Announce Exclusive Strategic Relationship; Carter Wilcoxson Appointed President of WebPrez
  • Agent Review Announces Major AI & AIO Platform Enhancements for Consumer Trust and Agent Discovery
  • Prosperity Life Group® Names Industry Veteran Mark Williams VP, National Accounts
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet