Health Commission sets new rules for certificate of need applications

House Bill 970, introduced in the Tennessee State Legislature on February 26, 2025, is poised to reshape the landscape of healthcare facility approvals in the state. The bill primarily aims to streamline the process for obtaining certificates of need (CON), a regulatory mechanism that healthcare institutions must navigate to establish new services or facilities.

At the heart of House Bill 970 is a provision that allows healthcare institutions to file objections against CON applications, enhancing transparency and community involvement. Opponents of an application must now submit their written notice to the commission at least 15 days before the scheduled meeting, ensuring that concerns are formally recognized and addressed. This change is expected to foster a more competitive environment among healthcare providers while also giving a voice to community stakeholders.

The bill also introduces a simultaneous review process for similar projects, allowing multiple applications to be considered together. This could potentially expedite approvals and reduce delays in expanding healthcare services, particularly in underserved areas. However, the commission retains the authority to refuse simultaneous consideration if applications do not meet specific criteria, which could lead to further scrutiny and debate.

Notably, the bill has sparked discussions among healthcare advocates and providers. Supporters argue that it will enhance access to care and promote efficiency, while critics express concerns about the potential for increased competition undermining smaller facilities. The economic implications are significant, as the bill could lead to a surge in new healthcare projects, impacting local economies and job creation.

As House Bill 970 moves through the legislative process, its fate remains uncertain. Stakeholders are closely monitoring the discussions, anticipating amendments that could either strengthen or weaken its provisions. The outcome of this bill could have lasting effects on Tennessee's healthcare system, influencing how services are delivered and accessed across the state.