The Georgia Department of Community Health denied Erlanger Health System's request to establish an ambulatory surgery center in Ringgold.
Erlanger wants to build a $9.8 million surgery center on Battlefield Parkway next to Erlanger South Family Medicine, but state regulations prohibit health care facilities from expanding services into areas where they're not needed.
Erlanger officials presented their case in a certificate of need, or CON, application filed in November 2017, but reviewers announced Monday they disagree.
"The proposal is not consistent with the considerations, standards and criteria applicable to the issuance of a Certificate of Need," Rachel King, executive director of the office of health planning, said in a letter addressed to Erlanger.
The decision letter cites "no numerical need" for the project based on population and the presence of multiple outpatient surgical services providers in the area. These facilities include North Georgia Foot and Ankle Surgery Center, Hamilton Ambulatory Surgery Center, The Surgery Center of Rome, Cartersville Medical Center, Hamilton Medical Center, Floyd Medical Center, Redmond Regional Medical Center and CHI Memorial Hospital-Georgia.
"The proposed project represents an unnecessary duplication of services and would result in an unreasonable effect on government and other payors for health care services," the letter states.
Erlanger's plan was contested by the Catoosa County government and CHI Memorial, which recently bought its own surgery center along Battlefield Parkway from the former Hutcheson Medical Center. But Erlanger argued that Memorial's right to offer surgical services in Catoosa County had lapsed.
Andrew McGill, vice president of strategy and business development at Memorial, said he is pleased with the state's decision to reject Erlanger's claim.
"We welcome the affirmation that CHI Memorial Hospital-Georgia is a full-service hospital and never doubted that we were entitled to provide surgical services," he said. "Our team is working diligently to provide the same high quality of healthcare that the community has come to expect."
Erlanger has 30 days from March 26 to request an appeal.
"While we respect the Department of Community Health's decision, we continue to believe it is in the best interest of the citizens of Catoosa County for Erlanger Health System to provide much-needed surgical services in their community," Erlanger Vice President of Operations & Market CEO Tanner Goodrich said in a statement. "Therefore, Erlanger will proceed with its commitment and will follow DCH's processes in appealing today's decision."
The state's decision on a separate certificate of need filed by Erlanger to offer radiation services in the area is due on June 25.
Contact staff writer Elizabeth Fite at efite@timesfreepress.com or 423-757-6673.