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.



  • Johnson City Medical Center MRI Project, Johnson City (Washington County), TN CN1610-035, adding a 1.5 Tesla Magnetic Resonance Imaging (MRI) scanner, to be located at 400 N. State of Franklin Road, Johnson City, TN . This project will not involve any other service for which a Certificate of Need is required. The estimated project cost is $2,023,108.
  • Unicoi County Memorial Hospital, Erwin (Unicoi County), TN CN1608-030, relocating and replacing Unicoi County Memorial Hospital with a 41,500 square foot 10-bed acute care replacement facility that will include an emergency department with 10 treatment rooms at an unaddressed site on Temple Road, Erwin (Unicoi County), TN. The estimated project cost is $19,999,141.
  • TN SM, LLC. d/b/a Providence Surgery Center, Mt. Juliet (Wilson County), TN CN1608-031, converting an existing ambulatory surgical treatment center (ASTC), which is limited to orthopedic and pain procedures, to a multispecialty ASTC located at 5002 Crossing Circle, Suite 110, Mount Juliet, (Wilson County), TN 37122. The ASTC will include two operating rooms and one procedure room that will be re-designated as part of the proposed multispecialty ASTC. The estimated project cost is $235,387.
  • LP Johnson City, LLC, Johnson City (Washington County), TN CN1609-032, replacing a 47-bed nursing home per TCA 68-11-1627 which permits one or more currently licensed nursing homes to be replaced with one single licensed nursing home. The new 47-bed facility will be located on the campus of what was formerly Northside Hospital which is now closed in Johnson City (Washington County), Tennessee. The facility will be created by relocating and replacing two Mountain State Health Alliance Nursing Homes-- the 34-bed Princeton Transitional Care and the 13-bed Franklin Transitional Care, with the new 47-bed facility. Princeton Transitional Care is located within Johnson City Medical Center at 400 North State of Franklin Road and Franklin Transitional Care holds an inactive license at that same site. The estimated project cost is $8,571,736.
  • Life Options of West Tennessee, Inc., Brighton (Tipton County), TN CN1609-033, establishing a new 30 bed nursing home that will consist of three (3) ten bed buildings located at an unaddressed site located at the south end of Grandview Drive, Brighton (Tipton County), TN. The estimated project cost is $7,685,534.
  • The Health Center of Hermitage, Hermitage (Davidson County), TN CN1404-011, 24 month extension, from August 1, 2017 to August 1, 2019, because of delays encountered by the project being put on hold pending the resolution of discrepancies between the life safety codes of CMS and the State of Tennessee on similar NHC projects. The resolution of life safety codes issues took considerable time. Unanimously approved on the June 25, 2014 Consent Calendar for the change of site/relocation for an approved but unimplemented certificate of need (CN1306-022A) for a 90* bed Medicare-certified nursing home to a new site containing approximately 14.02 acres at 4214 Central Pike in Hermitage. The estimated project cost is $19,241,697.00. Steps have been taken toward completion of the project, including site acquisition, approval of zoning changes, site engineering, the expenditure of $1.8 million, and other actions.
  • Collins Chapel Health & Rehabilitation Center, Memphis (Shelby County), TN-CN1202-011A, 6 month extension of the expiration date from February 1, 2017 to August 1, 2017. Unanimously approved on June 27, 2012 for the establishment of a nursing home with 28 Medicare dually-certified skilled beds, to be located at 409 Ayers St., Memphis, TN 38105. 12 month extension, due to financing issues, from August 1, 2014 to August 1, 2015, was unanimously approved on February 26, 2014. 18 month extension, due to financing issues, from August 1, 2015 to February 1, 2017, was unanimously approved on May 27, 2015. Construction commenced in July 2016, with completion anticipated for April 2017, per the applicant.

In addition, the Agency:

  • Denied the application by Compass Intervention Center, Memphis (Shelby County), TN CN1606025 requesting the establishment of a 48 bed inpatient mental health hospital for children and adolescents up to age 18;
  • Deferred to the February meeting the applications by Life House Hospice, Inc. Cookeville (Putnam County), TN CN1405-016 and Life House Hospice, Inc. Cookeville (Putnam County), TN CN1406023, requesting the establishment of a home care organization to provide hospice services in Putnam County;
  • Received a report regarding The Village at Germantown Skilled Nursing Facility, Germantown (Shelby County), TN CN13010-039AE, where a 2-month extension of the expiration date was granted by the Agency's Executive Director per the Agency's 6/22/16 policy discussion regarding delegation of authority pursant to TCA 68-11-1606(d), for the addition of 20 Medicare-certified skilled beds to its existing 30 Medicare skilled bed nursing home.