State representatives in Tennessee affirmed their support of a repeal of the state’s certificate-of-need law, the Chattanooga Times Free Press reported Jan. 12
Tennessee has had plans to repeal the 40-year-old law by Dec. 1, 2027 since 2024. Once the repeal takes effect, independent ASCs will be required to participate in TennCare and provide care for TennCare enrollees and charity care patients at levels comparable to hospital-affiliated ASCs. The Tennessee Health Facilities Commission will also conduct a six-year assessment to monitor the effects of the repeal.
In 2021, the state legislature passed a bill that allowed certain health providers, including mental health and substance abuse treatment centers, to be exempt from CON.
CON application fees in the state range from a minimum of $15,000 to a maximum of $95,000, according to the report, depending on the scale of the project.
Rep. Greg Vital, a Republican from Harrison, told the publication that CON has driven up healthcare costs for his constituents.
“The certificate-of-need process has become nothing more than a free gratification,” Mr. Vital said in a Jan. 8 event, reported by the Times Free Press.
According to the report, Nashville, Tenn.-based HCA Healthcare, has pushed for restricting CON, while the Tennessee Hospital Association has advocated against the law’s reform.
