TN House kicks CON law repeal to next week

NASHVILLE — A bill that would loosen Certificate of Need laws will be taken up next week after Tennessee legislators punted the chance to vote on it. The bill was set for a final vote in the House Monday evening. However, its sponsor, state Rep. Johnny Garrett, R-Goodlettsville, requested the legislation be placed on next week's House's agenda. Its possible Garrett seeks to iron out some differences between the House and Senate versions of the bill, which passed last week. A House vote is the bill's last step through the Tennessee General Assembly. If passed, the bill will head to Gov. Bill Lee's desk. Certificates of Need, or CONs, are permits the state requires healthcare facilities to obtain prior to establishing or expanding their operations in a particular area. They require healthcare companies to demonstrate the location has a need for their services. HB819 removes those permitting requirements from acute care hospitals, satellite emergency departments and cardiac catheterization labs in the state. The legislation would go into effect in July of 2030. CON laws are intended to prevent duplicate services in an area. Opponents argue the laws limit competition between healthcare facilities in a particular area, and therefore result in limited healthcare access. The bill has seen broad, bipartisan support throughout its legislative journey. Throughout four House committees, the bill has only received five votes against, compared to 62 votes in support. The state indicated its intention to repeal CON laws in its application for federal funds through the Rural Health Transformation Program. Tennessee has already elected to receive over $200 million through the program, which will go toward improving healthcare in rural communities. The state could be set to receive up to $1 billion over the next five years depending on its alignment with the healthcare policy goals of the Trump administration. The legislation is the latest in a series of healthcare reforms enacted by the state, many of which have been spearheaded by Northeast Tennessean legislators. Last week, the state Senate passed legislation repealing Ballad Health' Certificate of Public Advantage. The COPA shields the company from being subject to antitrust laws, with the idea that competition is replaced by state supervision and regulation. State Sen. Rusty Crowe, R-Johnson City, was credited by the bill's sponsor, state Sen. Bo Watson, R-Hixson, with contributing to the legislation. Also last week, state Sen. Bobby Harshbarger's, R-Kingsport, "Fair RX Act" passed through Senate committees and could be up for a full vote in the Senate this week. The legislation prevents Pharmacy Benefits Managers from owning pharmacies, and has seen staunch pushback from CVS Health – owners of one of the largest PBMs in the state.