A Lawsuit Accuses TennCare of Underpaying Hospitals
Chattanooga-based Erlanger Health System is once again suing Tennessee’s Medicaid program, known as TennCare, arguing that the state continues to underpay some hospitals that treat the neediest patients.
The complaint, filed earlier this month, is the third lawsuit Erlanger has filed against TennCare since 2009 alleging that Tennessee officials have continued to ignore a 2007 state law regarding how some hospitals are paid. The latest lawsuit says TennCare is paying Erlanger, an out-of-network hospital, the lowest rates for in-network hospitals when it should be paid the average in-network contract rate to out-of-network hospitals that provide emergency services to Medicaid enrollees.
The complaint requests that a Tennessee judge reverse TennCare’s decision on Sept. 20 to reject Erlanger’s petition claiming that the payment rules were invalid.
