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February 11, 2004

ShareAchieving a Critical Mission in Difficult Times - Illustrative Strategic Options for TennCare

Concerned about the growing costs of Tennessee's TennCare program, Governor Philip N. Bredesen asked a group of stakeholders to privately fund an independent study to determine the extent of the problem and potential ways to address it. The group engaged McKinsey & Company to prepare two reports. This report deals with the project's second objective, developing illustrative strategic options for TennCare. Based on earlier work and on interviews and analyses focused on this objective, they developed 25 potential initiatives for reducing TennCare's costs. They then created five different combinations of those initiatives that represent potential approaches for helping improve the financial outlook for Tennessee while still meeting TennCare's overall mission. These combinations are intended to illustrate a variety of potential strategies; they are not intended to be and should not be viewed as specific recommendations.

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