The Tennessee Health Services and Development Agency ("HSDA") is responsible for regulating the health care industry in Tennessee through the Certificate of Need Program. A Certificate of Need ("CON") is a permit for the establishment or modification of a health care institution, facility or service at a designated location. The CON program assures that health care projects are accomplished in an orderly, economical manner, consistent with the development of adequate and effective healthcare for the people of Tennessee. This Update is provided to our clients and friends to summarize the latest developments and activities from the HSDA meetings.

THE HSDA MET ON FEBRUARY 22, 2017.

THE FOLLOWING APPLICATIONS AND MODIFICATIONS WERE APPROVED:

  • Walgreens Infusion and Respiratory Services, LLC., d/b/a Vanderbilt HC/Walgreens IV & RT Services, Nashville (Davidson County), TN CN1612-040, relocating the applicant's principal office from 500 Wilson Pike Circle, Suite 115, Brentwood (Williamson County) to 624 Grassmere Park Drive, Suite 22, Nashville (Davidson County), TN 37211. The service area consists of Bedford, Cannon, Cheatham, Coffee, Davidson, Dekalb, Dickson, Franklin, Giles, Grundy, Hickman, Houston, Humphreys, Lawrence, Lewis, Lincoln, Macon, Marshall, Maury, Montgomery, Moore, Perry, Putnam, Robertson, Rutherford, Smith, Sumner, Trousdale, Warren, Wayne, White, Williamson, and Wilson Counties. The estimated project cost is $3,867,636.
  • Ivy Hall Nursing Home, Elizabethton (Carter County), TN CN1610034, adding one skilled nursing bed to the existing licensed 100 bed Ivy Hall Nursing Home located at 301 South Watauga Avenue, Elizabethton (Carter County), Tennessee. The estimated project cost is $37,500.
  • TriStar Maury Regional Behavioral Healthcare, Columbia (Maury County), TN CN1610-036, establishing a 60 bed mental health hospital for adolescents and adult patients located on the east side of North Campbell Boulevard, in the southeast quadrant of its intersection with Old Williamsport Pike, Columbia (Maury County), Tennessee 38401. The bed distribution will be 42 adult psychiatric beds and 18 adolescent psychiatric beds. The estimated project cost is $24,033,431.
  • Woodridge of West Tennessee, Inc., Jackson (Madison County), TN CN1610-037, adding 16 child/adolescent inpatient psychiatric beds to an existing 16 licensed bed geriatric inpatient mental health hospital located at 49 Old Hickory Blvd., Jackson (Madison County), TN 38305. The estimated project cost is $1,335,250.
  • Eye Surgery Center of Knoxville, LLC., Powell (Knox County), TN CN1610-038, establishing a single specialty ophthalmic ambulatory surgical treatment center at an unaddressed site on the south side of Dannaher Drive, Powell (Knox County), TN 37849. The proposed ambulatory surgical treatment center (ASTC) will have two operating rooms and one laser procedure room. The estimated project cost is $1,850,000. Opposition: Tennova North Knoxville Medical Center.
  • Parkridge West Hospital, Jasper (Marion County), TN CN1611039, the conversion of eight licensed medical surgical beds to eight adult psychiatric beds (for patients 18+) located at 1000 Highway 28, Jasper (Marion County), TN. The total Parkridge West Hospital adult psychiatric inpatient bed total will increase from 20 to 28. The estimated project cost is $2,184,808.

In addition, the Agency:

  • Denied the application by Premier Health Care, LLC., Bartlett (Shelby County), TN CN1608-027 for the establishment of a home care organization and the initiation of home health services.
  • Approved Emergency Rules implementing quality measures standards. An emergency rule may be effective no longer than 180 days per T.C.A. 4-5-208. The Agency will consider follow-up permanent rulemaking on quality measures, as well as proposed rules on post-CON reporting at the April 2017 HSDA meeting.
  • Received a report regarding the Wharton Nursing Home, Pleasant Hill (Cumberland County), TN CN1403-006A. Per the Agency's June 22, 2016 Delegation of Authority Policy, a 29% cost over-run was approved based on the following:
    • The project was complete and received a certificate of occupancy from the Tennessee Department of Health on August 4, 2016;
    • Upgrades to the proposed project improved the project (upgraded kitchen equipment and IT changes related to patient care);
    • Construction cost variance due to elapsed time between feasibility study project planning stage and the time the construction bids were let (18 months) and the project was completed ( a total of 36 months);
    • Financing costs (capitalized interest and debt service) were omitted from the original application.

The project included a construction/renovation project that relocated 31* of the existing 62 dually certified nursing home beds to an adjacent building on the campus of Uplands Village, a continuing care retirement community. The 31 beds were relocated from an existing building at 878-880 West Main Street to 55 West Lake Road which is where Wharton Nursing Home was previously located. All 62 beds are operated under the same license. The estimated project cost was $5,100,000.00. With the cost increase, the final project cost is $6,593,529, a difference of $1,493,529.

*These beds are not subject to the 2013-2014 Nursing Home Bed Pool.