Local News Tennessee Trauma Centers Struggling with Declining Cigarette Tax Revenue

Tennessee Trauma Centers Struggling with Declining Cigarette Tax Revenue

-

- Advertisment -

NASHVILLE, Tenn. — Tennessee’s 14 trauma centers are under increasing financial pressure, as they treat more patients each year while facing a steady decline in revenue from the state’s cigarette tax. Originally introduced in 2007 to help offset the costs of trauma care, the cigarette tax has become less reliable as cigarette sales have dwindled over the years.

During a Senate Finance, Ways, and Means Committee hearing on Tuesday, representatives from Tennessee’s trauma centers urged lawmakers to explore additional funding sources. Dr. Brad Dennis, trauma medical director at Vanderbilt University Medical Center, emphasized the growing gap in state trauma funding compared to neighboring states, which have more defined and effective funding models.

According to Dennis, states like Virginia generate about $16 million annually for trauma care by leveraging motor vehicle registration fees. In contrast, Tennessee’s cigarette tax revenue, which once brought in $9 million in 2008, had dropped to just $5.8 million in 2023, a significant shortfall for a system in high demand.

“As a physician, I’m glad fewer people are smoking. As a trauma physician, it hurts our resources,” said Dr. Reagan Bollig, a trauma physician at the University of Tennessee Medical Center in Knoxville. “It’s a dichotomy.”

Despite the drop in funding, trauma centers in Tennessee continue to face high operational costs. The state’s trauma centers require $170 million annually just to remain “ready” to treat patients, covering everything from medical supplies to staffing and infrastructure. However, the cigarette tax only covers 6.32% of this readiness cost, leaving the centers with a significant funding gap.

Tennessee’s per-resident contribution to trauma care is also among the lowest in the nation, at just $1.93 per person. By comparison, neighboring states provide as much as $8.12 per resident.

“We are not a profitable industry but a necessary one,” Dr. Dennis noted. “As you can imagine, there are many patients that are indigent or underfunded, so we need sufficient funding to maintain the care that is required.”

As the pressure on trauma centers grows, Tennessee lawmakers are facing tough decisions about how to support these critical services, which are vital to the health and safety of residents across the state. Without additional funding sources, Tennessee may struggle to keep pace with neighboring states and meet the growing demand for trauma care.

Latest news

Bomb Threat Forces Evacuation at Murfreesboro Church; Two Teens Charged

MURFREESBORO, Tenn. — Services at New Vision Church in Murfreesboro resumed Thursday after a bomb threat caused panic and...

Tennessee State Capitol: A Monument to Legacy and History

NASHVILLE, Tenn. — The Tennessee State Capitol, one of the most iconic structures in Nashville, stands as a testament...

Two Injured in East Nashville Shooting; Investigation Underway

NASHVILLE, Tenn. — Two people, including a juvenile, were injured in a shooting Thursday evening in East Nashville. The...

Motorcyclist Killed in Murfreesboro Crash; Investigation Underway

MURFREESBORO, Tenn. — Authorities are investigating a fatal motorcycle crash that occurred Thursday evening in Murfreesboro. The incident took...
- Advertisement -

East Nashville Business Owner Struggles After Car Theft—Again

NASHVILLE, Tenn. — A local business owner is dealing with the aftermath of her car being stolen for the...

Bomb Threat Prompts Evacuation at Murfreesboro Church; Teen Detained for Questioning

Murfreesboro, Tenn. — Authorities in Murfreesboro were called to a local church Tuesday evening after an online bomb threat...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you