7-57-501 - Purpose and policy. - Tennessee Statutes

7-57-501. Purpose and policy.

(a)  The public purpose and policy set forth in § 7-57-102(a) is also declared to be applicable to any hospital authority created by private act of the general assembly, sometimes referred to in this part as a “private act metropolitan hospital authority”, the principal hospital facilities of which are located in a county in this state with a population greater than two hundred fifty thousand (250,000), according to the 1990 federal census or any subsequent federal census. For purposes of this part, “hospital authority” means hospital authorities, hospital districts, and hospitals owned and operated by one (1) or more local governments, directly or through an elected or appointed governing board.

(b)  The general assembly hereby finds that the demand for hospital, medical and health care services is rapidly changing, as is the way and manner in which such services are purchased and delivered; that the market for hospital and health care services is becoming increasingly competitive; and that the hospital and other health care providers need flexibility to be able to respond to changing conditions by having the power to develop efficient and cost-effective methods to provide for hospital, medical and health care needs. The general assembly also finds that the increasing competition and changing conditions force hospitals and other health care providers to develop market strategies and strategic plans to effectively compete. The general assembly further finds that public hospitals in metropolitan areas are presently at a competitive disadvantage, and that significant investments in the public assets of private act metropolitan hospital authorities could be jeopardized by inability to compete with private hospitals because of legal constraints upon the scope of their operations and limitations upon the power granted to public hospitals under existing law.

[Acts 1995, ch. 119, § 1.]