DUANE SHERRILLEditor

The city of Tullahoma has entered a memorandum of understanding with Vanderbilt Harton Hospital as part of the Public Health Services Act.

Rich Ellis, President of Vanderbilt Tullahoma Harton Hospital, explained to the board of mayor and aldermen that the memorandum of understanding for the public health service act is designed to require big pharma to participate in the Medicaid program and to offer discounts to qualifying hospital on the front end. The rebate is typically anywhere from 12% to 26%, he noted.

“That is tied to us continuing to provide uncompensated charity care and participate in the Medicare program which we do,” Ellis said told the board of mayor and aldermen. “Roughly six percent of our patients are completely unfunded and another 16% of our patients come through the Medicaid program. That money would enable us to continue to provide clinical care and fund clinical operations.”

City Attorney Stephen Worsham told the board that signing the memorandum does not financially encumber the city in anyway but the agreement is required by the government.