§ 68-11-1618 — Nontransferability of certificate of need

Tennessee § 68-11-1618

• Jurisdiction: Tennessee
• Title: 68

Text

(a) Except as provided in this section, the transfer of a certificate of need renders the certificate of need and all rights under it void. As used in this section, "transfer" means the sale, assignment, lease, conveyance, purchase, grant, donation, gift, or other direct or indirect transfer of any nature whatsoever of a certificate of need. However, this section does not prohibit the transfer of a certificate of need in the following circumstances: (1) If the transfer has been approved by the commission after the commission determines that the new holder of the certificate of need would provide health care that meets appropriate quality standards, and that the transfer would not reduce access to consumers, particularly those in underserved communities; those who are uninsured or underinsured; women and racial and ethnic minorities; TennCare or medicaid recipients; and low-income groups; and (2) If the certificate of need is transferred as part of the transfer of ownership of a licensed healthcare institution. (b) (1) With regard to a certificate of need for the establishment of a proposed new healthcare institution, a change of control of the entity prior to completion or licensing renders the certificate of need and all rights under it null and void. "Change of control" means: (A) In the case of a partnership, the termination of interest of a general partner; (B) In the case of a limited liability company or limited liability partnership, a change in the composition of members or partners to the extent that the management or membership control is different than that described in the certificate of need application; and (C) In the case of a corporation, the termination of interest of a shareholder or shareholders controlling more than fifty percent (50%) of the outstanding voting stock of the corporation. (2) Subdivision (b)(1) does not prohibit change of control as described in subdivision (b)(1), if the commission determines, upon petition of the prospective owner or owners of the entity, that the prospective owner or owners demonstrate that the owner or owners will provide health care that meets appropriate quality standards, and that the transfer would not reduce access to consumers, particularly those in underserved communities; those who are uninsured or underinsured; women and racial and ethnic minorities; TennCare or medicaid recipients; and low-income groups. (c) A certificate of need, and the rights under the certificate of need, are null and void if it is the subject of a development contract or agreement to sell or lease the facility that was not fully disclosed in the application.

Legislative History

Amended by 2023 Tenn. Acts, ch. 466, s 8, eff. 7/1/2023. Amended by 2022 Tenn. Acts, ch. 1119, s 143, eff. 7/1/2022. Amended by 2021 Tenn. Acts, ch. 557, s 1, eff. 10/1/2021. Acts 2002, ch. 780, § 4.