An Act to Rectify the Damages Elicited by the “Certificate of Need” Policy in Tennessee

BHB/3/13

Sponsored by Chetan Yenigalla of Ravenwood High School

This legislation was filed in the Health category

Presented as part of the YIG Volunteer 2024 conference

1 BE IT ENACTED BY THE TENNESSEE YMCA YOUTH IN GOVERNMENT
2 Section 1: Unless the context requires an alternative, the terms in this act are defined as follows:
3 Certificate of Need (CON): A permit to control health care costs by avoiding unnecessary
4 expansion or duplicative services within an area, designed for the establishment or modification of
5 a health care institution, facility, or service at a designated location.
6
7 CON Legislators/Policymakers: Profit-maximizing officials who capitalize on Certificate of Need laws
8 to divert funding from rural healthcare development for personal use.
9
10 Rural Hospital: A hospital located outside of a major urban or suburban area; provided that the
11 hospital may be located within a metropolitan statistical area.
12
13 Healthcare Investment: Federal or state funding committed to a hospital(s), board of healthcare,
14 clinician(s), pharmacy/pharmacies, and any facilities with the purpose of establishing public
15 medical welfare.
16
17 Repeal: To revoke or annul a state policy.
18
19 GOP Party: “Grand Old Party” representing Republican policymakers in the United States bipartisan
20 congressional system.
21
22 Section 2: As of January 1st, 2024, the following states have fully repealed their Certificate of
23 Need programs, allowed them to expire, or never enacted them: California, Idaho, Utah, New
24 Mexico, Wyoming, Colorado, North Dakota, South Dakota, Kansas, Texas, Pennsylvania, and New
25 Hampshire. Moreover, Minnesota, Arizona, and Wisconsin have largely modified their CON policies.
26 The remaining 35 states (70% of the United States) maintain entirely uninhibited CON laws.
27
28 Section 3: Certificate of Need policies define the medical requirement of a district by measuring
29 the financial revenue/profit of that district, and then positively correlating financial status with
30 medical requirement.
31
32 Section 4: The presence of a CON program is associated with 30 percent fewer rural hospitals per
33 100,000 rural residents. Furthermore, CON exists on an ideological basis of prioritizing profits over
34 healthcare access, denying 1.5 billion USD in new proposed healthcare investment for Tennessee
35 since April, 2000.
36
37 Section 5: The Certificate of Need Policy in Tennessee is hereby repealed.
38
39 Section 6: CON policymakers shall redirect the 1.5 billion USD that has been barred from
40 healthcare investment since April, 2000 to construct twenty-six government-funded hospitals and
41 fully staff each one for five years. This shall provide a rural hospital for each of the twenty-six
42 counties in East Tennessee, the most hospital-scarce region in the state.
43
44 Section 7: The expense of maintaining one hospital with a two-hundred patient capacity is 12
45 million USD annually. Thus, the cost of twenty-six hospitals sustained for five years shall require
46 the entirety of the 1.5 billion USD that CON legislators have prohibited from healthcare investment
47 in the past twenty-four years.
48
49 Section 8: 65% of Tennessee’s GOP voters support a full repeal of CON policies. Therefore, given
50 that Tennessee is a primarily Republican state with a GOP majority in both the House of
51 Representatives and the Senate, lawmakers will not have a large concentration of public opposition
52 to repealing CON laws across the state.
53
54 Section 9: This act will not come at the expense of the Tennessee government. Instead, it will
55 allocate a majority of healthcare investment away from corporate greed and back towards rural
56 hospital development using funds that have been redirected. Therefore, the expense of enacting
57 this policy is 0.00 USD.
58
59 Section 10: All laws and policies in conflict with this action are hereby absolved.
60
61 Section 11: This act shall take effect on October 1, 2024, the beginning of the 2025 fiscal year,
62 with rural communities and those who need uninhibited healthcare relying on it.
63