The Americans for Prosperity Foundation (AFPF) recently released a report highlighting the amount of new investment in the healthcare industry which was denied due to the state’s Certificate of Needs (CON) law.
Tennessee’s CON law mandates approval from the state before healthcare providers can add or expand facilities, services, or equipment.
The law has been described by other organizations as “government permission slips” or “government red tape.”
AFPF’s study found that approximately $1.5 billion in new proposed healthcare investment was denied due to Tennessee’s CON law since April 2000.
AFPF argues that Tennessee’s CON law empower “bureaucrats” rather than “patients’ needs” in deciding what healthcare services are offered in the state, which AFPF says leads to “worse health outcomes for patients in the Volunteer State.”
“Tennessee’s CON regime is costly and unnecessary. It has directly denied $1.5 billion in health care investment over the last 23 years—and deterred much more. Prohibitive application costs, miles of red tape, and the threat of competitor opposition preclude many providers from offering services they otherwise would,” AFPF added.
Tori Venable, state director for Americans for Prosperity – Tennessee, (AFP-TN) commented on the new study, saying, “Tennessee’s CON regime is costly, unnecessary, and harms patients by restricting access to health care services. Our report highlights how Tennessee’s CON law needlessly delays development of critical care provisions. Americans for Prosperity Foundation calls for comprehensive reform to promote competition, innovation, and better health care outcomes for Tennesseans.”
AFPF’s study comes as a new poll shows a majority of Republican voters in Tennessee oppose the state’s CON law, as previously reported by The Tennessee Star.
AFP-TN has previously called on the Tennessee General Assembly to repeal the state’s CON law as part of its 2024 Reignite the American Dream Legislative Agenda.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
