New Law Will Enable Tennessee To Draw Additional Federal Funds To Help Local Ambulance Services

Major legislation that will enable Tennessee to draw additional federal funds to help local ambulance services continue to transport patients was recently signed into law by Governor Bill Haslam. The new law, sponsored by Senate State and Local Government Committee Chairman Ken Yager (R-Kingston), is expected to bring in approximately $19.7 million in federal funds for ambulance services through the state’s TennCare Program.

“The Ground Ambulance Service Provider Assessment Act sets a mechanism in place for cash-strapped Tennessee ambulance services to generate needed additional revenue,” said Senator Yager. “Many of our ambulance services have a difficult time staying in the black on current operating revenue and rely on local appropriations to stay open. This law will allow local services, using existing law and rule, to generate additional funds on TennCare transports.”

The legislation is modeled after the successful Hospital Assessment Act which has prevented catastrophic TennCare cuts over the last seven years. It was supported by the State Ambulance Service Association.

“In the weeks ahead, the Bureau of TennCare will develop the rules to govern the collection and disbursement of funds which will require federal approval,” added Senator Yager. “I appreciate and thank the Tennessee Ambulance Association and Bureau of TennCare for their cooperative attitude to find a solution to the problem.”

The bill is set to take effect on July 1.