Sundquist Plans Changes To Tennessee Health Industry Regulatory Commission

Tennessee Gov. Don Sundquist (R) plans to propose changes to the state Health Facilities Commission, the agency that regulates health facilities, the Chattanooga Times & Free Press reports. The agency handles the certificate-of-need process that Tennessee hospitals, nursing homes, and other health care facilities must complete to win approval for expansions, construction and "major" equipment purchases. The commission is designed to "protect competition" in the health care industry, ensure that areas do not have "duplicate services" and determine if services and new equipment are needed. However, Sundquist has "expressed concern" in the past that the agency has not "address[ed] the needs" of patients in TennCare, the state's Medicaid managed care program. The current commission expires in June and Sundquist has asked the agency to "'wind down' for possible restructuring." Though many states have eliminated certificate-of-need processes for health facilities, Melanie Hill, executive director of the commission, said the process is needed "for the orderly development of health care. It's a great process if you want the public involved," she said. Hill added that it is "not yet known" what will happen to the commission when it expires. The Free Press reports that Dennis Pettigrew, the CEO of the Chattanooga-based Erlanger health system, said local communities' health needs would "be better served by a free-standing committee" since the process "has become too political" (Park, Chattanooga Times & Free Press, 10/15). For further information on state health policy in Tennessee, visit State Health Facts Online.