Lee urges certificate-of-need reform to unlock $1 billion in rural health funding
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Summary
Governor Bill Lee told lawmakers that Tennessee must reform certificate-of-need rules to access a federal $1 billion rural health transformation fund and to allow more provider flexibility in rural areas.
NASHVILLE — Governor Bill Lee urged the General Assembly to change long-standing health regulations so Tennessee can qualify for and spend a federal rural health transformation fund described in his speech as $1,000,000,000 over five years.
"In order to be eligible for these federal dollars, Tennessee must take legislative action to make it easier for medical professionals to practice and easier for rural health care facilities to operate," Lee said. He argued that some certificate-of-need laws created more than 50 years ago now prevent investment and competition in rural communities, and said those laws have blocked roughly $1,500,000,000 in health-care investment since 2000 (as stated in his remarks).
Lee cited practical examples: allowing pharmacists to test and treat simple conditions, letting nurse practitioners and physician assistants practice to the full extent of their training, and removing rules that force facilities to close when a supervising physician leaves. He framed the changes as steps to increase local access to care.
Why it matters: The governor linked regulatory reform to eligibility for federal funds and to expanding care access in counties with limited options; the changes he proposed would involve statutory revisions and legislative debate.
What’s next: Lawmakers will consider statutory changes to certificate-of-need rules and scope-of-practice laws if they pursue the governor’s direction. Lee did not provide statutory text in the address.