THA Warns of Hospital Closures Due to Federal Cuts

The Tennessee Hospital Association is warning of possible closures if federal spending is reduced as planned. The first in nearly a nearly decade of planned cuts begins October 1st.

A third of Tennessee’s hospitals are already losing money, according to the association that represents them. THA president Craig Becker says those that see mostly TennCare and Medicare patients will be stretched, some of them beyond the breaking point.

“We try not to be the ones carrying the pitchforks and torches, but this is one of those times where it really is pretty scary about what could happen.”

There are several issues at play. So-called budget sequestration – a result of Congressional gridlock – will mean an $83 million reduction to hospitals in Tennessee over the next 12 months. The Affordable Care Act calls for reductions of $93 million, according to THA figures.

The healthcare overhaul will also require almost everyone to get health coverage, which Becker says should eventually benefit Tennessee hospitals. But he says the speed and combination of funding cuts coming down the pike could “make the difference between life and death for some.”