United States: Tennessee CON Report - October 2013

I. October 2013—Tennessee Certificate of Need Meeting

At the October meeting of the Tennessee Health Services Development Agency, as part of the introductory announcements, Jeff Ockerman noted that nursing home questionnaires would be coming out soon and the agency anticipated it would release new guidelines for home health services by the end of the year. During the meeting, the board approved the following applications for certificate of need.

A. Certificate of Need Review

  1. The Health Center of Hermitage, Nashville (Davidson County), Tennessee (CN1306-022): The establishment of a nursing home by relocating 60 of the 150 nursing home beds from the approved but unimplemented certificate of need for the Health Center of Nashville (CN1107-024A) pursuant to Tenn. Code Ann. § 68-11-1631, which permits the qualified partial relocation of nursing home beds and the addition of 30* new Medicare-certified skilled nursing home beds for a total 90 Medicare-certified skilled bed nursing home. The estimated project cost is $20,142,000. *These beds are subject to the 2012-13 Nursing Home Bed Pool.
  2. Shannondale Rehabilitation Center, Knoxville (Knox County), Tennessee (CN1307-024): The establishment of a new 30-bed* Medicare skilled nursing home to be known as Shannondale Rehabilitation Center. The facility will be located on the campus of Shannondale Continuing Care Retirement Community (CCRC) at 7510 and 7522 Middlebrook Pike in Knoxville, Tennessee. The estimated project cost is $6,609,488. *These beds are subject to the 2013-14 Nursing Home Bed Pool.
  3. NHC/Maury Regional Transitional Care Center, Columbia (Maury County), Tennessee (CN1307-025): The establishment of a 112-bed* Medicare skilled nursing home to be known as NHC/Maury Regional Transitional Care Center pursuant to Tenn. Code Ann. § 68-11-1627, which permits the replacement of one or more currently licensed nursing homes with one single nursing home. The new facility will be created by relocating and replacing the 92-bed NHC Healthcare, Hillview, and the 20-bed Maury Regional Hospital Skilled Nursing Unit to an 11-acre site at 5004 Trotwood Avenue in Columbia, Tennessee. The estimated project cost is $18,161,672. *These beds are subject to the 2013-14 Nursing Home Bed Pool.
  4. Maury Regional Hospital d/b/a Maury Regional Medical Center, Columbia (Maury County), Tennessee (CN1307-026): The relocation of two linear accelerators and a mobile positron emission tomography (PET) scanner from the main hospital campus at 1224 Trotwood Avenue to Maury Regional Cancer Center at 808 South James Campbell Boulevard with the replacement of one linear accelerator at the main hospital campus. The estimated project cost is $7,742,231.
  5. Chattanooga-Hamilton County Hospital Authority d/b/a Erlanger Medical Center, Chattanooga (Hamilton County), Tennessee (CN1307-027): The acquisition of a PET/ CT (computed tomography) scanner and the initiation of PET services at an estimated project cost of $4,307,699.
  6. Baptist Plaza Surgicare, Nashville (Davidson County), Tennessee (CN1307-029): The relocation and replacement of the existing ASTC from 2011 Church Street, Medical Plaza 1, Lower Level, to the northeast corner of Church Street and 20th Avenue North. The facility will be constructed in approximately 28,500 square feet of rentable space in a new medical office building and will contain nine operating rooms and one procedure room. The estimated project cost is $29,836,377.

B. General Counsel's Report

  1. The Health Center of Nashville, Nashville (Davidson County), Tennessee (CN1107-024A): Request for an 18-month extension of the expiration date from November 1, 2014, to May 1, 2016, and the following project modifications pursuant to the approval of CN1306-022, which will relocate 60 of the 150 beds authorized by CN1107-024A:
  • Reduction of 60 beds from the 150 approved beds to 90 beds;
  • Decrease in project cost by $2,381,950 from $23,894,100 to $21,512,150; and
  • Other changes related to the footprint of the facility including (a) reduction in overall square footage by 8,592 square feet to 77,408 square feet; (b) increase in therapy gym space by 2,500 square feet from 2,300 square feet to 4,800 square feet; and (c) the addition of 3,400 square feet of shelled space for potential future growth.
  1. Parkridge Valley Adult Services, Chattanooga (Hamilton County), Tennessee (CN1202-007A): Request for a $2,126,794 project cost increase from $6,762,605 to $8,889,399.
  2. Christian Care Center of Memphis f/k/a Americare Health and Rehabilitation Center, Memphis (Shelby County), Tennessee (CN0908-045AE): Request for a $1,834,581 project cost increase from $8,639,395 to $10,473,976 and a two-year extension of the expiration date from January 1, 2014 to January 1, 2016.

The board denied the following application for certificate of need.

A. Certificate of Need Review

  1. CSPM Surgery Center, Chattanooga (Hamilton County), Tennessee (CN1306-021): The establishment of a single specialty ambulatory surgical treatment center limited to pain management, with one operating room limited to patients of Center for Spine and Pain Medicine, P.C. at 7446 Shallowford Road, Suite 102, Chattanooga, Tennessee 37421, at an estimated project cost of $683,350.

The following applications for certificate of need were deferred to the December meeting.

A. Certificate of Need Review

  1. Community Hospices of America-Tennessee, LLC, d/b/a Hospice Compassus-The Highland Rim, Tullahoma (Coffee County), Tennessee (CN1307-023): The addition of Lincoln County to the service area of Hospice Compassus which is currently licensed in Bedford, Cannon, Coffee, Franklin, Giles, Grundy, Hickman, Lawrence, Lewis, Marshall, Maury, and Moore Counties. The estimated project cost is $28,000.
  2. Saint Thomas Midtown Hospital f/k/a Baptist Hospital, Nashville (Davidson County), Tennessee (CN1307-028): The modification of the hospital by replacing and relocating four operating rooms at an estimated project cost of $11,499,496.

The next agency meeting will be held on November 20, 2013, at 8:30 a.m. Although no applications will be heard, the agency will review the administrative law judge's initial order issued on May 30, 2013, regarding East Tennessee Radiation Therapy Services, LLC, and the agency's denial of a certificate of need to establish an ASTC, acquire a linear accelerator, and initiate radiation therapy services in the Dowell Springs area of Knoxville, Tennessee.

II. Certificate of Need Program Report—Filings Since September 2013 Meeting

A. Applications for CON

  1. Smoky Mountain Ambulatory Surgery Center, LLC, Knoxville (Knox County), Tennessee (CN1308-032): The addition of interventional pain management services at its ASTC, which currently provides manipulation under anesthesia services to be provided in the same procedure room that is currently licensed, at an estimated project cost of $53,000.
  2. Love Ones, Memphis (Shelby County), Tennessee (CN1309-033): Establishment of a home care organization and the initiation of home health services in Shelby, Fayette, and Tipton Counties at an estimated project cost of $177,800.
  3. Woodridge of West Tennessee, LLC, Jackson (Madison County), Tennessee (CN1309-035): Establishment of a new 16-bed geriatric psychiatric facility at an estimated project cost of $913,000.
  4. NHC Homecare, Murfreesboro, Murfreesboro (Rutherford County), Tennessee (CN1310-036): The addition of Franklin County to the existing counties of Bedford, Cannon, Clay, Coffee, Cumberland, Davidson, Dekalb, Fentress, Grundy, Jackson, Macon, Marshall, Morgan, Overton, Pickett, Putnam, Rutherford, Smith, Trousdale, VanBuren, Warren, White, Williamson, and Wilson. The estimated project cost is $3,000.
  5. NHC Homecare, Springfield, Springfield (Robertson County), Tennessee (CN1310-037): The addition of Macon County to the existing counties of Cheatham, Davidson, Montgomery, Robertson, Sumner, and Wilson. The estimated project cost is $3,000.
  6. The Jackson Clinic—MRI Service, Jackson (Madison County), Tennessee (CN1310-038): The relocation of existing magnetic resonance imaging (MRI) and CT services from 616 West Forest Avenue to a newly constructed medical office building at 2859 Highway 45 Bypass in Jackson and the replacement/upgrade of one MRI unit. The estimated project cost is $1,978,943.
  7. The Village at Germantown Skilled Nursing Facility, Germantown (Shelby County), Tennessee (CN1310-039): The addition of 20* Medicare certified skilled nursing facility beds to the existing 30-bed facility for a total of 50 beds on the enclosed CCRC for senior adults at an estimated project cost of $5,654,232. *These beds are subject to the 2013-14 Nursing Home Bed Pool.
  8. Crestwyn Behavioral Health, Germantown (Shelby County), Tennessee (CN1310-040): The establishment of a 60-bed mental health psychiatric hospital to be constructed to offer 15 beds for psychiatric care to adolescents, 30 beds for adults of all ages, and 15 beds for adult chemical dependency care. Upon approval, Delta Medical Center will reduce by 60 beds. The estimated project cost is $26,875,862.

III. Projects Deemed Complete for Review at November 2013 Meeting

There were no applications deemed complete on August 31, 2013. Therefore, no applications were entered into the September review cycle for the November meeting.

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