2019 Tennessee Code
Title 68 - Health, Safety and Environmental Protection
Health
Chapter 11 - Health Facilities and Resources
Part 16 - Tennessee Health Services and Planning Act of 2002
§ 68-11-1620. Nontransferability of certificate of need.

Universal Citation: TN Code § 68-11-1620 (2019)
  • (a) Except as provided in this section, the transfer of a certificate of need shall render the certificate of need and all rights under it null and void. As used in this section, “transfer” means any sale, assignment, lease, conveyance, purchase, grant, donation, gift or any other direct or indirect transfer of any nature whatsoever of a certificate of need; provided, that nothing in this section shall prohibit the transfer of a certificate of need, other than a certificate of need for the establishment of a new health care institution, if the certificate of need is transferred as part of the transfer of ownership of an existing health care institution.

  • (b)

    • (1) With regard to a certificate of need for the establishment of a proposed new health care institution, a change of control of the entity prior to completion or licensing shall render 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) Nothing in subdivision (b)(1) shall prohibit change of control as described in subdivision (b)(1), if the agency determines, upon petition of the prospective owner or owners of the entity, that such prospective owner or owners demonstrate that they meet the criteria of economic feasibility, contribution of orderly development and the considerations of § 68-11-1605.

  • (c) A certificate of need, and the rights under the certificate of need, shall be 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.

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