Tennessee lawmakers are under pressure to speed up the repeal of the state’s certificate-of-need laws to avoid losing more than $200 million in federal funding for rural health initiatives, CBS affiliate WJHL 11 reported March 9.
Every state submitted applications seeking a share of the $50 billion Rural Health Transformation program, which was launched in 2025. But CMS and President Donald Trump’s administration have tied some of that funding to certain policies at the state level, including the elimination of CON, according to the report.
Tennessee has had plans to repeal the 40-year-old law by Dec. 1, 2027, since 2024. When Gov. Bill Lee applied for the first round of the RHTF, he pledged that the legislature would eliminate CON by Jan. 1, which would require lawmakers to speed up their repeal efforts this legislative session.
This appears unlikely, according to WJHL, as legislators have thus far introduced other amendments that push some CON reform past next year. A recent amendment would delay eliminating CON for acute care hospitals until 2030.
In a recent committee hearing, Michael Hendrix, a policy director for Mr. Lee told legislators that some of the program’s $207 million already dedicated to Tennessee could get clawed back if CON and other policy changes don’t occur.
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