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Senate approves limited repeal of corporate practice ban, creates licensure pathway for anesthesiologist assistants in small counties
Summary
Senate Bill 764 partially repeals the corporate practice of medicine in low-population counties to allow hospitals to employ certain specialists and establishes a licensed anesthesiologist assistant (AA) pathway with supervision rules; the committee passed the rewritten amendment and sent the bill to calendar with an 8–1 vote.
Senate Bill 764, carried by Sen. Bailey, as amended, partially repeals Tennessee’s corporate-practice-of-medicine restrictions to allow hospitals in counties below a population threshold to employ radiologists, anesthesiologists, pathologists and emergency physicians directly. The amended measure also creates an anesthesiologist assistant (AA) licensure pathway and practice requirements, including written supervision agreements and compliance with federal supervision ratios for medical direction.
Sponsor remarks: Senator Bailey described the amendment as the result of multiyear negotiations among stakeholders and said the measure represents a negotiated compromise after several years of effort. He described it as a “partial repeal” tailored to smaller counties to give rural hospitals more flexibility to staff specialties.
Key provisions: As amended, the bill (1) authorizes hospitals in counties under a defined population threshold to employ certain specialists directly, (2) establishes licensure and practice rules for anesthesiologist assistants, including written supervising agreements, compliance with federal supervision ratios for reimbursement and medical-direction supervision models, and (3) adds an AA position to the Board of Medical Examiners by designating one of the nonphysician slots.
Committee questions and concerns: Senators pressed the sponsor on the reasoning for the population cutoff that excludes certain counties and on the rationale for adding an AA designee to the Board of Medical Examiners. Senator Hensley clarified that the amendment does not change practice relationships for certified registered nurse anesthetists (CRNAs). Department of Health representative Holt Witt confirmed the department can implement the board-membership change and that boards generally operate by appointment authority.
Vote and next steps: The committee adopted the amendment and approved the bill by roll call (8 ayes, 1 no — Sen. Hensley) and sent it to the calendar. The transcript records the tally as "8 ayes, 1 no."
