Proposed state legislation to change Tennessee's certificate-of-need legislation would cause hospital service cuts and closures and reduce care access for many communities across the state, according to the Tennessee Hospital Association.
Enacted 50 years ago, Tennessee's CON law mandates state approval before providers can add or expand facilities, services or equipment. Proponents of the legislation argue that it is effective at controlling costs and ensuring access to care, while those opposing the law say that the red tape and inefficiencies limit access to care and hinder competition.
Tennessee's CON law requires providers to show there is a need in the community for new services or facilities before they can be established.
THA argues that this prevents unnecessary and costly duplication of services and helps level the playing field by preventing providers who are not subject to the same federal regulations as hospitals — such as the requirement to provide care to everyone, regardless of their ability to pay — from cherry picking the most profitable patients and services.
"Our state's certificate-of-need law helps ensure hospitals are able to continue providing services that may be less profitable but are vital to patients and communities. The proposed changes to the law will undermine the sustainability of local hospitals and patient access to a full range of healthcare services," THA President and CEO Wendy Long, MD, said in a news release. "These changes could cause hospitals to reduce the types of services they provide and, in some cases, close their doors permanently. Tennesseans in those communities could lose their local hospital or access to critical services like labor and delivery, behavioral health and inpatient care."
THA is opposing the two proposed CON bills, SB2846/HB2720 and SB2009/HB2269, and aims to engage with lawmakers about improvements to the CON process to ensure access to high-quality care for all Tennesseans.