NASHVILLE, Tenn. (WKRN) — Tennessee’s 14 trauma centers are treating more patients than ever, but a state cigarette tax that helps cover certain costs is burning up.
Representatives of Tennessee’s 14 trauma centers asked lawmakers for additional funding sources during the Senate Finance, Ways, and Means Committee hearing Tuesday, because the cigarette tax, created in 2007 to help offset some of the trauma centers’ costs, including “readiness” expenses and uncompensated care, isn’t generating as much revenue.
“The majority of the states in our nation have clearly defined trauma funding sources, Tennessee being one of them, but as we look at some of our neighboring states, you see we’re sort of trailing behind them in terms of what the state funding is by state,” Dr. Brad Dennis, the trauma medical director at the Vanderbilt University Medical Center said.
Dennis told lawmakers states like Virginia use motor vehicle registration fees to generate around $16 million per year for its trauma centers.
Meanwhile, Tennessee’s cigarette tax revenue for trauma centers continues to fall due to dwindling cigarette sales, generating around $9 million in 2008 and just $5.8 million in 2023.
“As a physician, I’m glad fewer people are smoking. As a trauma physician, it hurts our resources. It’s a dichotomy,” Dr. Reagan Bollig with the University of Tennessee Medical Center at Knoxville said.
According to testimony Tuesday, while neighboring states’ funding pays between $2.21 to $8.12 per resident, Tennessee pays $1.93 per resident. In addition, the cigarette tax covers just 6.32% of the state’s trauma centers’ “readiness cost” of $170 million, which is how much money is needed for centers to be ready to treat a patient.
“What we talked about was $170 million in readiness; the cost of actually providing that care once they’re admitted is tremendous,” Dr. Dennis said. “As you can imagine, there are many patients that are indigent or underfunded, so no, we are not a profitable industry but a necessary one for sure as it relates to hospital care.”
Last year, the general assembly budgeted an additional $5 million for the Trauma Care Fund, but it was a one-time payment.
