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.

THE HSDA MET ON JUNE 27, 2018

THE FOLLOWING APPLICATIONS AND MODIFICATIONS WERE APPROVED:

Christian Care Center of Medina f/k/a Milan Health Care Center, Medina (Gibson County), TN - CN1802-006

The relocation and replacement of a 66-bed dually certified nursing home within Gibson County from 8060 Stinson Road in Milan to an undeveloped site on State Highway 45E and Sonic Drive in or near the city limits of Medina, a distance of approximately 10 miles. The facility which has held an inactive license since June 2017 was acquired by its current ownership in July 2017. The estimated project cost is $10,172,313.

TriStar Southern Hills Medical Center Emergency Department at Antioch, Antioch (Davidson County), TN - CN1803-017

The establishment of satellite emergency department facility with 11 treatment rooms. The project will be located at an unaddressed site west of I-24 Exit 60, on the east side of Cane Ridge Parkway at its intersection with Century Farms Parkway, Antioch (Davidson County). The applicant is owned by HCA Health Services of Tennessee, Inc. It will be under the administrative control of TriStar Southern Hills Medical Center and will operate as an outpatient department of the hospital. The estimated project cost is $13,883,982.

Vanderbilt HC/Option Care IV Services, Nashville (Davidson County), TN - CN1803-012

The addition of 27 counties in East and West Tennessee to the existing 33-county Middle Tennessee service area for a home health agency limited to infusion patients only. The expanded service area would include Anderson, Bledsoe, Blount, Bradley, Cumberland, Fayette, Hardin, Haywood, Knox, Hamilton, Morgan, Hardeman, Jefferson, Lauderdale, Loudon, Marion, McMinn, McNairy, Meigs, Monroe, Polk, Rhea, Roane, Sevier, Shelby, Tipton, and Sequatchie. The principal office is located at 624 Grassmere Park Drive, Suite 22, Nashville (Davidson County), TN. The applicant is owned by Option Care Infusion Services, LLC. The estimated project cost is $15,000.

Maxim Healthcare Services, Brentwood (Williamson County), TN - CN1803-013

The addition of seven counties to the existing nine county service area of a home health agency that primarily serves private duty patients but has no limitation. The expanded service area would include Bedford, Cannon, Coffee, DeKalb, Hickman, Marshall, and Maury. The principal office is located at 115 East Park Drive, Suite 200, Brentwood (Williamson County), TN. The applicant is owned by Maxim Healthcare Services, Inc. The estimated project cost is $90,000.

Opposition: Pamela Owens and All Heart Home Care

Premier Radiology, Gallatin (Sumner County), TN - CN1803-014

The establishment of an outpatient diagnostic center (ODC) and the initiation of magnetic resonance imaging (MRI) services. A fixed 1.5 Tesla MRI unit and a fixed 16-slice computed tomography (CT) unit will be located at a new building under construction at 110 St. Blaise Road, Gallatin (Sumner County). If approved, Advanced Diagnostic Imaging, PC will surrender two previously implemented certificates of need for MRI services at project implementation. The applicant is owned by Middle Tennessee Imaging, LLC. The estimated project cost is $6,078,275.

Opposition: Anthony Holt, Sumner Regional Medical Center

Vanderbilt University Medical Center, Nashville (Davidson County), TN - CN1803-016

The addition of 14 adult psychiatric beds to the existing 92-bed Vanderbilt Psychiatric Hospital which operates under the license of Vanderbilt University Medical Center (VUMC) for a total of 106 psychiatric beds. VUMC is currently licensed for 1,029 beds and has the following additional beds under construction: 134 approved via the CON process and 68 beds via the PC 1043 exemption process. Upon completion, the licensed bed total will be 1,245. The applicant is owned by Vanderbilt University Medical Center. The facility is located on the campus of VUMC at 1211 Medical Center Drive, Nashville (Davidson County), TN. The estimated project cost is $4,214,113.

Crestwyn Behavioral Health, Memphis (Shelby County), TN - CN1803-018

The addition of 14 psychiatric beds to the existing 66-bed mental health hospital resulting in 80 beds. The increase in licensed bed capacity will be achieved by adding new beds and converting existing ones as follows: the addition of 3 adult beds, increasing the total from 33 to 36; the addition of 16 child/adolescent beds, increasing the total from 16 to 32; and the conversion of dual diagnosis beds, reducing the total from 17 to 12, a reduction of 5 beds. Crestwyn Behavioral Health is located at 9485 Crestwyn Hills Cove, Memphis (Shelby County), TN. The applicant is owned by Crestwyn Health Group, LLC d/b/a Crestwyn Behavioral Health. The estimated project cost is $91,000.

THE FOLLOWING APPLICATIONS WERE DENIED:

Erlanger Bradley County-Cleveland (Bradley County), TN - CN1802-011

The establishment of a satellite emergency department facility with seven treatment rooms and the initiation of cardiac catheterization services at an unaddressed site, otherwise described as 2.9 acres, at the southeast quadrant of Exit 20 northbound on U.S. Interstate 75, accessed via Cherokee Gateway Boulevard, Cleveland (Bradley County),TN. The applicant is owned by Chattanooga-Hamilton County Hospital Authority d/b/a Erlanger Health System. It will be under the administrative control of Erlanger Medical Center and will operate as an outpatient department of the hospital. The estimated project cost is $11,297,935.

Opposition: Tennova Healthcare-Cleveland, CHI Memorial Hospital and Starr Regional Medical Center

Tennova Healthcare Cleveland, Cleveland (Bradley County), TN - CN1803-015

The establishment of a satellite emergency department facility with eight treatment rooms at 680 Stuart Road NE, Cleveland (Bradley County), TN. The applicant is owned by Cleveland Hospital Company, LLC d/b/a Tennova Healthcare – Cleveland. It will be under the administrative control of Tennova Healthcare-Cleveland and will operate as an outpatient department of the hospital. The estimated project cost is $12,081,195.

Opposition: Barbara Knight, David Darden, Erlanger Bradley County, and Starr Regional Medical Center

GENERAL COUNSEL'S REPORT

A. Stones River Manor, Murfreesboro (Rutherford County), TN – CN1506-026AEE

APPROVED: Request for a 2-month extension, from 7/1/2018 to 9/1/2018

The project was approved on 9/23/2015 for the establishment of a 30-bed Medicare-certified skilled nursing home located at 205 Haynes Drive, with an estimated total cost of $2,729,126.75.

A six-month extension was granted by the Executive Director on August 17, 2017, pursuant to the Agency’s Delegation of Authority policy extending the expiration date from November 1, 2017 to May 1, 2018. The project was 80% complete at the time.

A two-month extension was granted by the Agency on April 25, 2018, from 5/1/2018 to 7/1/2018 because construction is complete and awaiting Tennessee Department of Health occupancy approval.

B. Contested Case Update

OTHER BUSINESS

A. Audit Committee Report

B. Appointment of Audit Committee Members

C. Appointment of Audit Committee Chair

ADJOURNMENT