February 20, 2010 -- State and local leaders, citing "unprecedented times," pledged to work together to find a sustainable solution for the financially ailing Regional Medical Center at Memphis.

Deputy to the governor John Morgan, Speaker of the House of Representatives Kent Williams, R-Elizabethton, and members of the Shelby County legislative delegation toured the county-owned hospital Friday.

"Understanding the fiscal problems of The Med is easier if you see the physical problems," Morgan said after his first tour of the hospital. "The facility is not a modern facility in a world that demands modern health care."

The hospital is a patchwork of 1.2 million square feet cobbled together in six buildings built between 1947 and 1994. The size and layout, hospital officials said, make the space inefficient, and that made many on the tour believe a new hospital should be built.

"If you look at bringing real help to The Med from the state, then we've got to talk about a new Med facility," said Rep. G.A. Hardaway, D-Memphis. "The Med is antiquated. It's a dinosaur."

The hospital's five-year plan proposes building a $318 million, eight-story facility that would house 310 beds on 420,000 square feet.

Asked if the hospital could expect any new funds from the state this year, Williams said there's a good chance, but no guarantees. He said officials should tap into the $575 million in reserves left in Gov. Phil Bredesen's budget.

"If you can't afford clothes for your children, you go into your saving account," Williams said. "We have a financial obligation to the taxpayers in Tennessee. ... but we also have a moral obligation to care of the needy."

The tour came in the wake of a federal civil rights complaint filed against the state by Shelby County Commissioner Mike Ritz over state funding mechanisms used to pay hospitals for uncompensated care. Finance and Administration Commissioner Dave Goetz sent an e-mail to hospital officials last week claiming the suit halted further funding talks.

Morgan said the e-mail was sent in frustration and that "the conversation is a lot easier to have when there's not litigation involved."

Morgan and Hardaway both said funding negotiations for The Med were never discontinued.

While local leaders look to find $22 million in new, annual funding for The Med, TennCare cuts could trim another $50 million from the hospital's bottom line, likely forcing the hospital to close, officials have said.

Morgan said the Tennessee Hospital Association is readying a bill that would create an "enhanced coverage fee" on hospitals to help close the proposed 22 percent cut to the entire TennCare program. Details of the proposed "bed tax" have not been made public.

-- Toby Sells: 529-2742

Regional Medical Center at Memphis

FTI Cambio consultant management team leaves Friday

New Med CEO Dr. Reginald Coopwood begins March 1

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