United States: Tennessee CON Report - September 2015

I. September 2015—Tennessee Certificate of Need Meeting

At the September meeting of the Tennessee Health Services and Development Agency (the HSDA), Jeff Ockerman announced that the 2014 Update to the State Health Plan had been signed by the Governor in August. Also, Jeff Ockerman noted that comments received by the HSDA regarding the revision of the Psychiatric Inpatient Services criteria and standards are currently under review.

The agency approved the following applications during the September meeting:

A. Certificate of Need Review

1. The Chattanooga Endoscopy Center, Chattanooga (Hamilton County), TN - CN1506-024: The relocation of an existing single specialty ASTC limited to endoscopy, from 2341 McCallie Avenue, Plaza 3, Suite 303 to the first floor of The Riverside Business Center at 1501 Riverside Drive, Suite 117, Chattanooga, TN, and the expansion of its existing surgical complement from 3 to 5 procedure rooms with a 6th procedure room to be shelled in for potential future expansion. The estimated project cost is $8,623,911.00.

2. Stones River Manor, Murfreesboro (Rutherford County), TN - CN1506-026: The establishment of a 30 bed Medicare-certified skilled nursing home located at 205 Haynes Drive, Murfreesboro (Rutherford County), TN 37129. The estimated project cost is $2,729,126.75.

B. General Counsel's Report

1. Select Specialty Hospital-Memphis, Memphis (Shelby County), TN - CN1212-062A: Request for a four-year extension of the expiration date from August 1, 2016, to August 1, 2020. The CON was approved on May 22, 2013, for the addition of 28 long-term acute beds. The estimated project cost was $6,898,392.

2. Rosewood Manor, Springhill (Maury County), TN - CN0703-021AEEE: Request for a 24-month extension of the expiration date from September 1, 2016, to September 1, 2018. This will be the fourth extension. The project was approved by unanimous vote on July 25, 2007, with an estimated project cost of $10,668,976.

The following applications were deferred to the October 2015 meeting:

C. Certificate of Need Review

1. Hero Healthcare, Oliver Springs (Morgan County), TN - CN1504-012: The establishment of a home care organization and initiation of home health services limited to a specific patient, who is a beneficiary of the United States Department of Labor, Division of Energy Employees Occupation Illness Compensation Program (EEOICP). The parent office will be located at 231 Walls Hollow Road, Oliver Springs (Morgan County), TN. The estimated project cost is $29,680.

2. Metro Knoxville HMA, LLC d/b/a Tennova Healthcare North Knoxville Medical Center (f/k/a Mercy Health System, Inc. d/b/a Mercy Medical Center North), Powell (Knox County), TN - CN1106-019AE: Request for a one-year extension of the expiration date from December 1, 2015, to December 1, 2016. This will be the second extension. The project was approved on October 26, 2011, with an estimated cost of $4,694,671.

The following application was denied:

D. Certificate of Need Review

1. CAMM Care LLC d/b/a Patriot Homecare Harriman (Roane County), TN - CN1506-023: The establishment of a home care organization and initiate home health services limited to patients who are beneficiaries of the United States Department of Labor, Division of Energy Employees Occupation Illness Compensation Program (EEOICP). The parent office will be located at 514 Devonia Street, Harriman (Roane County), TN. The estimated project cost is $41,080.

The next agency meeting will be held on October 28 at 8:30 a.m.

II. Certificate of Need Program Report—Filings in September 2015

A. Applications for Certificate of Need

1. Asbury Place at Kingsport, Kingsport (Hawkins County), TN - CN1508-034: Construction of a building on existing campus and the renovation of its existing 67-bed facility into a 45-bed facility. The estimated project cost is $7,887,077.

2. Michael Dunn Center, Rockwood (Roane County), TN - CN1509-038: The establishment of a four-person ICF/IDD home to facilitate the relocation of four individuals exiting Green Valley Developmental Center. The estimated project cost is $211,104.

3. University of Tennessee Medical Center, Knoxville (Knox County), TN - CN1509-039: The acquisition and initiation of MRI services with a cost of $2 million. The estimated project cost is $3,640,700.

4. United Regional Medical Center, Manchester (Coffee County), TN - CN1509-040: The relocation of MRI/PET unit from 1001 McArthur Drive to 481 Interstate Drive. The estimated project cost is $247,000.

III. Projects Deemed Complete for Review at October 2015 Meeting

A. Consent Agenda

1. The Endoscopy Center, Knoxville (Knox County), TN - CN1508-030: The relocation of The Endoscopy Center of Knoxville from 801 Weisgarber Road, Suite 100, to a site at the

intersection of Middlebrook Pike and Dowell Springs Boulevard in Knoxville, TN. The existing surgical complement will be reduced from eight to six procedure rooms. The estimated project cost is $13,791,719.

2. Tennova LaFollette Medical Center, LaFollette (Campbell County), TN - CN1508-032: The initiation of extracorporeal shockwave lithotripsy (ESWL) services up to three days/week on the hospital campus through the use of a leased mobile lithotripsy unit. The estimated project cost is $440,203.

3. Saint Thomas Medical Partners, Nashville (Davidson County), TN - CN1508-033: The acquisition of magnetic resonance imaging unit (MRI) held by Neurological Surgeons, P.C. pursuant to CN9902-013AM and initiation of MRI services at its current location at 2214 Elliston Place, Suite 200, Nashville (Davidson County), TN. The estimated project cost is $2,213,165.44.

B. Certificate of Need Review

1. Alere Women's and Children Health, LLC, Nashville (Davidson County), TN - CN1506-025: The addition of 22 counties (including Cannon, Clay, Cumberland, DeKalb, Fentress, Franklin, Giles, Humphreys, Jackson, Lawrence, Lewis, Lincoln, Macon, Moore, Overton, Pickett, Putnam, Smith, Stewart, Trousdale, Van Buren, and White Counties), to the 14- county service area approved under Matria Healthcare, Inc., CN9807-043A. There will be no change in the services nor will the location of the parent office change. The total estimated project cost is $84,000.

2. Emergency Department of Gateway Medical Center, Clarksville (Montgomery County), TN - CN1507-027: The establishment of a full-service, 24-hour/seven-day-per-week satellite emergency department to be located on the north side of Highway 76 approximately 1,400 feet east of I-24 at Exit 11 in Clarksville (Montgomery County), TN 37043, to be operated under the license of Gateway Medical Center. It will have eight treatment rooms providing Level I through V emergency treatment services and will include ancillary services such as medical lab, CT, X-Ray and ultrasound. The estimated project cost is $10,700,000.

3. NorthCrest Medical Center, Clarksville (Montgomery County), TN - CN1507-028: The establishment of a full-service, 24-hour/seven-day-per-week satellite emergency department at NorthCrest Medical Center to be located near the intersection of Gateway Plaza Boulevard and TN Highway 76 in Clarksville (Montgomery County), TN 37043. It will have eight treatment rooms and will provide emergency diagnostic and treatment services. The total estimated project cost is $6,890,427.66.

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