Three-way joint venture surgery center opposes proposal for competing center

Kingsport, Tenn.-based Holston Valley Surgery Center is opposing a proposal that would develop an orthopedic surgery center in the region, local news affiliate reports.

What you should know:

1. Johnson City, Tenn.-based Watauga Orthopedics is seeking state permission to develop a $17.3 million orthopedic surgery center in Johnson City. The center would be a single-specialty center and would have four operating rooms. It would perform joint replacement procedures.

2. The center is supported by Mountain Region Family Medicine and SoFHA, a large regional physician group.

3. The center's certificate of need application is contested. Holston Valley Surgery Center — which is co-owned by Addison, Texas-based United Surgical Partners International, Johnson City-based Ballad Health and a group of local physicians — argued the new center would dilute a crowded market. Ballad Health cannot formally oppose a project because of its Certificate of Public Advantage. However, some view the objection by the surgery center as Ballad taking a position. Ballad said to it had no formal position on the application.

4. The center says current operating room utilization is at 70.1 percent and that a new center could cause it to drop to under 70 percent, which the state has said would lead to a denial in past guidelines. The state will ultimately make the decision whether to approve or deny the CON application.

More articles on surgery centers:
5 employees of U of New Mexico outpatient surgery center test positive for COVID-19
ASC leaders on top priorities during COVID-19 pandemic
ASCs projected to take 68% of orthopedic surgeries by mid-decade — 5 insights

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