Erlanger Health System denied CON to build surgery center — 4 insights

Chattanooga, Tenn.-based Erlanger Health System's request to build a surgery center in Ringgold, Ga., was denied by the Georgia Department of Community Health, the Times Free Press reports.

Here's what you should know.

1. Erlanger was attempting to build a $9.8 million surgery center next to its family medicine practice, but state reviewers said there was no numerical need for the project.

2. There are already several outpatient surgical providers in the area including:

  • North Georgia Foot and Ankle Surgery Center in Ringgold
  • Hamilton Ambulatory Surgery Center in Dalton, Ga.
  • The Surgery Center of Rome (Ga.)
  • Cartersville (Ga.) Medical Center
  • Hamilton Medical Center in Dalton
  • Floyd Medical Center in Rome
  • Redmond Regional Medical Center in Rome
  • CHI Memorial Hospital-Georgia in Fort Oglethorpe

3. The proposed center would have directly competed with Chattanooga-based CHI Memorial. CHI Memorial purchased an abandoned surgery center from the former Hutcheson Medical Center and is in the process of updating the center to reopen it. When Erlanger purchased the center it a dormant CON, which was included in the purchase.

4. Erlander Vice President of Operations & Markets CEO Tanner Goodrich said Erlanger would appeal the decision.

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