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 monthly meetings.

HSDA AGENDA FOR FEBRUARY 28, 2018.

TBI HEADQUARTERS BUILDING, 901 R.S. GASS BLVD., NASHVILLE, TN

THE FOLLOWING ARE SLATED FOR DISCUSSION:

STATE HEALTH PLAN UPDATE

Update: Jeff Ockerman, Director of Health Planning, Department of Health

CONSENT CALENDAR

A. Campbell Clinic Surgery Center, Germantown (Shelby County),TN - CN1712-038

The relocation of Campbell Clinic Surgery Center currently located at 1410 Brierbrook Road, Germantown (Shelby County), TN to a new facility to be located at an unaddressed site on the south side of Wolf River Boulevard, 525 feet east of its intersection with Germantown Road, Germantown (Shelby County), TN. If approved, this application will replace the applicant's unimplemented CON (CN1208-040A) which was approved to expand the present facility at its current location from 4 operating rooms and 1 procedure room to 8 operating rooms and 2 procedure rooms. The applicant is owned by Campbell Clinic Surgery Center, LLC. The estimated project cost is $21,485,200.

B. Opens Arms Care Corporation d/b/a Shelby County #1 Old Brownsville (West), Bartlett (Shelby County), TN ─ CN1710-030

The relocation of an 8 bed ICF/IID home from 1457 Greendale Avenue, Memphis (Shelby County), TN to an unaddressed site located on the southwest corner of the intersection of Old Brownsville Road and Oak Road, Bartlett (Shelby County), TN 38002. The proposed site is the west half of the parcel described as Parcel B0148 00061 in the records of the Shelby County Tax Assessor. The estimated project cost is $3,370,000.

C. Opens Arms Care Corporation d/b/a Shelby County #2 Old Brownsville (East), Bartlett (Shelby County), TN ─ CN1710-031

The relocation of an 8 bed ICF/IID home from 1445 Greendale Avenue, Memphis (Shelby County), TN to an unaddressed site located on the southwest corner of the intersection of Old Brownsville Road and Oak Road, Bartlett (Shelby County), TN 38002. The proposed site is the east half of the parcel described as Parcel B0148 00061 in the records of the Shelby County Tax Assessor. The estimated project cost is $3,370,000.

D. Open Arms Care Corporation d/b/a Shelby County #3, Cordova (Shelby County), TN ─CN1711-034

The relocation of an 8 bed ICF/IID home from 5350 Benjestown Road, Memphis (Shelby County), TN to an unaddressed site located on an 8.2 acre parcel located on the southwest corner of the intersection of Dexter Road and Dexter Lane, Cordova (Shelby County), TN 38002. The proposed site is the south half of the parcel described as Parcel 096507 00307C in the records of the Shelby County Tax Assessor. The applicant is owned by Open Arms Care Corporation. The estimated project cost is $5,130,000.

CERTIFICATE OF NEED APPLICATIONS

A. DeLozier Surgery Center, Nashville (Davidson County), TN ─ CN1711-032

The conversion of an existing single specialty ambulatory surgical treatment center (ASTC) to a multi-specialty ASTC which is currently limited to plastic surgery procedures. The ASTC is located at 209 23rd Avenue North, Nashville (Davidson County), TN 37203. The applicant is owned by DeLozier Surgery Center, LLC. The estimated project cost is $50,000.

B. NHC Healthcare Johnson City, Johnson City (Washington County), TN ─ CN1711-033

The addition of 7 Medicare-certified skilled nursing facility (SNF) beds to NHC Healthcare Johnson City, a 160-bed dually certified nursing home at 3209 Bristol Highway, Johnson City (Washington County) TN. If approved, all 167 beds will be dually certified. The applicant is owned by NHC Healthcare Johnson City, LLC. The estimated project cost is $474,000.

C. The Plastic Surgery Center of Brentwood, Brentwood (Davidson County). TN – CN1711-035

The establishment of a single specialty ambulatory surgical treatment center (ASTC) limited to plastic surgery by physicians who are owners or employees of The Plastic Surgery Clinic, PLLC d/b/a Cool Springs Plastic Surgery. The ASTC will have two operating rooms and one procedure room and will be located at 620 Church Street East, Brentwood (Davidson County), TN. The applicant is owned by The Plastic Surgery Center of Brentwood, LLC. The estimated project cost is $4,524,636.

GENERAL COUNSEL’S REPORT

A. Erlanger Behavioral Health, LLC, Chattanooga (Hamilton County), TN – CN1603-012A

Unanimously approved on 8/24/2016 for the establishment of a new 88 bed mental health hospital and initiation of inpatient psychiatric and substance abuse services. Erlanger Behavioral Health, LLC, is 51% majority owned by Erlanger Health System, and 49% owned by Acadia Healthcare.

Request for change of control, with 80% of the membership interests in the LLC allocated to Acadia, and 20% to Erlanger Health System. The Acadia interests have been assigned by Acadia Healthcare Company to its whollyowned subsidiary, Acadia Chattanooga Holdings, LLC.

CONTESTED CASE UPDATE

LEGISLATIVE UPDATE

ADJOURNMENT