In its recent legislative session, the Tennessee legislature passed a bill to create the Health Facilities Commission, which combines the Health Services Development Agency, which administers the Certificate of Need (“CON”) program, and the Board for Licensing Health Care Facilities in Tennessee. The actions and activities of the previous two Boards will now operate under one Commission. The law is set to be signed by Governor Bill Lee in the coming weeks.
The Health Facilities Commission the legislature created is defined as “the commission created by this part to develop the criteria and standards to guide the commission when issuing certificates of need; to conduct studies related to health care, including needs assessments; to administer the certificate of need program and related activities; and to license and regulate hospitals, recuperation centers, nursing homes, homes for the aged, residential HIV supportive living facilities, assisted-care living facilities, home care organizations, residential hospices, birthing centers, prescribed child care centers, renal dialysis clinics, ambulatory surgical treatment centers, outpatient diagnostic centers, adult care homes, and traumatic brain injury residential homes.”
The primary responsibility of the Board of Licensing Health Care Facilities was to license and survey health care facilities, which will continue under the new Commission. The Board also facilitated changes of ownership, renewals, and branch office applications. The new law allows for all administrative rules that were promulgated by the Board of Licensing Health Care Facilities while under the Department of Health to be transferred to the Health Facilities Commission.
The Health Services Development Agency administered the CON law, which had major changes go into effect in October 2021. In creating the new Commission, the legislature also amended some of the CON laws. The high-level changes are as follows:
The enactment date is set for July 1, 2022, so transitional work related to the Health Facilities Commission should begin this summer. If you need assistance with a CON application or completing an initial, change of ownership, or renewal application of a healthcare facility, please reach out.
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