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SB 1369

Health Care - As introduced, removes acute care hospitals from the requirement of obtaining a certificate of need beginning July 1, 2028. - Amends TCA Title 4; Title 33; Title 68; Title 71 and Chapter 985 of the Public Acts of 2024.

114th Regular Session (2025-2026) Introduced by Bo Watson

Tennessee bill eliminates Certificate of Need requirements for acute care hospitals starting 2028, removing state approval process for major hospital expansion and service development.

Signed by Governor.
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Bill Summary · SB 1369

Legislative bill overview

SB 1369 removes the requirement for acute care hospitals in Tennessee to obtain a Certificate of Need (CON) beginning July 1, 2028. Currently, hospitals must receive state approval before expanding services or making major capital investments. This bill eliminates that regulatory requirement for acute care facilities, allowing them greater operational freedom.

Why is this important

Certificate of Need laws control healthcare infrastructure development and are intended to prevent unnecessary duplication and control costs. Removing this requirement could accelerate hospital expansion and new services but may also reduce state oversight of healthcare market development and potentially increase healthcare spending if facilities expand without centralized planning.

Potential points of contention

  • Market competition vs. cost control: Proponents argue CON removal increases competition and innovation; opponents contend it leads to redundant services and higher costs without coordinated planning
  • Rural healthcare access: Unclear whether removing CONs helps or harms rural hospitals that depend on regulated market protections to maintain operations in underserved areas
  • State planning authority: The change reduces Tennessee's ability to strategically guide healthcare infrastructure development and respond to regional health disparities through coordinated resource allocation

Compiled from official sources — confirm details with the bill’s official record.

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