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.



Saint Thomas Highlands Hospital, Sparta (White County), TN ─ CN1706-020

The expansion of an existing geriatric inpatient psychiatric unit from 10 beds to 14 beds by redestributing four medical/surgical beds to psychiatric beds. If approved, the redistribution will be accomplished without increasing the hospital’s 60-bed licensed capacity. The facility is located at 401 Sewell Road, Sparta (White County), TN 38583. The estimated project cost is $358,226.

Saint Thomas Rutherford Hospital, Murfreesboro (Rutherford County), TN ─CN1707-021

The addition of 72 medical/surgical beds which will increase the licensed bed capacity of the hospital from 286 beds to 358 beds, if approved. The hospital is located at 1700 Medical Center Parkway, Murfreesboro (Rutherford County), TN 37129. The estimated project cost is $47,478,943.

Saint Thomas Surgery Center – New Salem, Murfreesboro (Rutherford County), TN─ CN1707-022

The establishment of a 13,000 SF multi-specialty ambulatory surgical treatment center (ASTC) with two operating rooms and one procedure room located at 2779 New Salem Road, Murfreesboro (Rutherford County), TN 37128. The estimated project cost is $16,228,645.

Simultaneous Review - StoneCrest Surgery – CN1707-023.

StoneCrest Surgery Center, Smyrna (Rutherford County), TN ─ CN1707-023

The establishment of a 13,000 SF multi-specialty ambulatory surgical treatment center (ASTC) with two operating rooms and one procedure room located at an unaddressed site on the campus of StoneCrest Medical Center located at 200 StoneCrest Boulevard, Smyrna (Rutherford County), TN 37167. The estimated project cost is $10,556,553.

Simultaneous Review - Saint Thomas Surgery Center - CN1707-022.


Chattanooga-Hamilton County Hospital d/b/a Erlanger East Hospital – CN1502-005A

Erlanger East Hospital (EEH), a 43* bed satellite hospital operating under the 788 bed license of Chattanooga-Hamilton County Hospital Authority d/b/a Erlanger Medical Center (EMC), was approved for the expansion of its cardiac catheterization services, previously limited to diagnostic procedures, to include interventional (therapeutic) cardiac catheterization services located at 1755 Gunbarrel Road, Chattanooga (Hamilton County), TN 37416. The application specified that therapeutic cardiac catheterization services would be provided to low-risk patients while high risk cardiac patients will be referred to EMC.

Request for modification to perform therapeutic cardiac catheterization without limitation, to include high risk cardiac patients.

*NOTE TO AGENCY MEMBERS-At the time CN1502-005A was filed, Erlanger was in the process of implementing CN0405-047AE which included the construction of a 4-story patient tower and the transfer of 79 beds(in phases) to Erlanger East. Nine beds had already been added at the time CN1502-005A was filed. CN0405-47AE is now complete. The total bed count at Erlanger East is 113 beds. 


Denied a request by HCA Health Services of Tennessee, Inc. d/b/a TriStar Southern Hills Medical Center for the Agency to review the Administrative Law Judge’s Initial Order denying a CON for the establishment of a freestanding emergency department near the Old Hickory Blvd. exit at I-65.

OTHER BUSINESS (Discussion only; No vote taken)

IMPLEMENTATION OF PC 1043-QUALITY MEASURES REPORTING TCA § 68-11-1609 (h) The agency shall maintain continuing oversight over any certificate of need that it approves on or after July 1, 2016. Oversight by the agency shall include requiring annual reports concerning continued need and appropriate quality measures as determined by the agency. The agency may impose conditions on a certificate of need that require the demonstration of compliance with continued need and quality measures; provided that the conditions for quality measures may not be more stringent than those measures identified by the applicant in the applicant’s submitted application.

A. CON Continuing Oversight Options

B. Continuing Need/Quality Measures Annual Reporting Form

C. CON Application Revisions