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.



Good Samaritan Society - Fairfield Glade, Crossville (Cumberland County), TN ─CN1702-006

The addition of 30 Medicare beds to the existing 30 bed nursing home for a total of 60 beds. All 60 beds will be dually certified for Medicare/Medicaid (TennCare). The 30 beds are subject to the 125 Nursing Home Bed Pool for 2016-2017. The application is filed as a replacement for CN1407-031A which expired before project completion. The estimated project cost is $6,741,682.73.

Tennessee Nursing Services of Morristown, Inc. d/b/a SunCrest Home Health, Jefferson City (Jefferson County), TN ─ CN1612-042

The relocation of the applicant’s principal office from Claiborne County to Jefferson County, TN. The service area consists of Campbell, Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Sullivan, and Union Counties. The estimated project cost is $306,432.

TriStar Skyline Medical Center, Nashville (Davidson County), TN ─ CN1612- 041

The transfer of 31 medical-surgical beds from TriStar Skyline’s satellite campus located at 500 Hospital Drive, Madison (Davidson County), TN, into newly constructed space at its main campus at 3441 Dickerson Pike, Nashville (Davidson County). The estimated project cost is $30,038,000. CONDITION: Applicant must delicense 31 beds from the Madison Campus once the transfer to the newly constructed space at 3441 Dickerson Pike, Nashville, TN is complete.

Watauga Orthopaedics, PLC, Kingsport (Sullivan County), TN ─ CN1701-001

The initiation of MRI services and the addition of a 0.3 Tesla extremity magnetic resonance imaging (MRI) scanner limited to the patients of Watauga Orthopaedics, PLC located at 875 Larry Neil Way, Kingsport (Sullivan County), TN 37660. The estimated project cost is $914,439.

Starr Regional Medical Center-Etowah, Etowah (McMinn County), TN ─ CN1701-002

The expansion of the hospital’s existing fourteen (14) bed geri-psychiatric unit to eighteen (18) beds. Upon opening the four (4) additional proposed beds, the applicant will close four (4) general hospital beds at Etowah with the result that the licensed beds at Etowah (72) and the total consolidated licensed beds (190) for both the Etowah and Athens hospitals will not change. The estimated project cost is $621,351.

Middle Tennessee Imaging, LLC d/b/a Premier Radiology, Murfreesboro (Rutherford County), TN ─ CN1701-003

The establishment of an Outpatient Diagnostic Center, initiation of MRI services, and acquisition of a fixed MRI unit in leased space at 2723 New Salem Highway, Murfreesboro (Rutherford County), TN. The estimated project cost is $2,626,335.46.

Metro Knoxville HMA, LLC, d/b/a, North Knoxville Medical Center, Powell (Knox County), TN - CN1206-027AM

North Knoxville Medical Center requests a modification from a mobile to a fixed service. Unanimously approved on September 26, 2012 for the initiation of mobile Positron Emission Tomography - Computerized Tomography (PET/CT) Services 1 day per week. CT did not require CON approval, but some machines combine PET/CT capabilities. Modification to 3 days per week unanimously approved on February 25, 2015. The equipment acquisition itself would not require a CON.

In addition, the Agency:

Denied the application by Saint Francis Hospital Bartlett, Arlington (Shelby County), TN ─ CN1701-004 for the establishment of a full service, 24 hour per day/7 day per week satellite emergency department.

Denied the application by Baptist Memorial Hospital, Memphis (Shelby County), TN ─ CN1701-005 for the establishment of a full service, 24 hour per day/7 day per week satellite emergency department.

Denied the application by Lebanon Surgery Center, LLC, Lebanon (Wilson County), TN ─ CN1702-007 for the establishment of a multi-specialty ambulatory surgical treatment center (ASTC).

Approved the Emergency Rule, adopted at its February 22, 2017 meeting, regarding quality measures.