Owners of an established ASC in Kingsport, Tenn., are objecting to the construction of a new ASC about 25 miles away, ABC affiliate WJHL.com reports.
Watauga Orthopaedics is seeking approval from state regulators to build a $17.3 million ASC in Johnson City, Tenn.
The planned ASC would feature six operating rooms and provide lower-cost options for hip and knee replacements, as well as other orthopedic surgeries, according to the 20-physician group.
Attorneys for Holston Valley Surgery Center in nearby Kingsport argue the proposed facility would have a negative effect on other surgery centers in the market.
Holston Valley Surgery Center is co-owned by United Surgical Partners, Ballad Health and a group of physicians and practices.
Watauga Orthopaedics' certificate of need application is being considered by the Tennessee Health Services and Development Agency on Oct. 28.
If approved, the ASC would open in 18 to 24 months.