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February 11, 2004
Achieving 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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