State Bill of the Month — April 30: Tennessee HB 2269

HB 2269

Introduced by State Rep. Clark Boyd (TN-46), alongside five other cosponsors in the Tennessee House of Representatives, this bill would eliminate many of the state’s certificate of need (CON) laws, which would allow citizens more widespread and affordable access to health care services.

Certificate of need (CON) laws require potential healthcare providers to get approval from a government entity before building any new healthcare facilities in a designated area. New York was the first state to adopt CON laws restricting healthcare facility construction in 1964. The CON process can take years to complete and cost hundreds of thousands of dollars before any decision is made.[1]

CON laws have effectively shielded existing health care facilities and providers from competition. They typically harm taxpayers and patients by bringing about higher healthcare costs and fewer options.[2]

It is for these reasons, among others, that the Taxpayers Protection Alliance (TPA) is proud to make Tennessee’s HB 2269, a bill to eliminate many of the state’s CON laws – introduced by State Rep. Clark Boyd (TN-46), alongside 5 other cosponsors – its State Bill of the Month for April 2024.

This legislation would increase healthcare options and lower prices for citizens in the Volunteer State.  

CON laws are not new, but states are increasingly repealing them across the country. According to the National Conference of State Legislatures, 35 states and DC operate some sort of CON program. As of January 2024, 12 states have repealed their programs or have allowed them to expire.[3] States have increasingly seen harm that these laws have on state healthcare services. CON laws are a form of protectionism by entrenched players who have the authority to reject competitors coming into the market.

According to Rep. Boyd, the bill’s primary sponsor:

“It is essential that every community in Tennessee has access to vital health care facilities and services,” Boyd said. “This legislation represents the culmination of years of diligent work by various stakeholder groups from across Tennessee committed to ensuring that happens. These reforms will not only improve access to potentially lifesaving medical services in our state, but they will help reduce costs for patients as well.”

• State Representative Clark Boyd (TN-46).

After passing the Tennessee legislature, HB 2269 will soon head to Governor Bill Lee’s desk for a signature.  

HB 2269:

HB 2269 (Tennessee) – this bill would eliminate many of the state’s certificate of need (CON) laws, which would allow citizens more widespread and affordable access to health care services. CON laws prevent other healthcare facilities from opening in designated areas, while state and local regulatory bodies hamstring competition for healthcare services in states that have CON laws.

This is why TPA is proud to make HB 2269, introduced by State Rep. Clark Boyd (TN-46), alongside 5 other cosponsors in the Tennessee House of Representatives, its State Bill of the Month for April 2024.

[1] https://spn.org/articles/certificate-of-need-laws/

[2] https://tennesseestar.com/commentary/commentary-tennessees-certificate-of-need-laws-stifle-competition-and-allow-harmful-healthcare-monopolies/admin/2023/07/01/

[3] https://www.ncsl.org/health/certificate-of-need-state-laws