JAMESTOWN, Tenn. — The troubled hospital company that received $121,000 in federal COVID-19 relief money for a closed hospital said last week the Department of Justice inquired about the money.
The Jamestown Regional Medical Center closed in June 2019 but received $121,722 in provider relief funds in 2020, according to the Department of Health and Human Services.
According to its annual financial filing last week, Rennova Health said the Justice Department sent it questions about the provider relief money — and additional funding it received through PPP loans — in the form of a civil investigation inquiry.
"There is no allegation of wrongdoing and no indication that any liability will materialize," the company's filing said. "The company is confident that all PPP notes and HHS Provider Relief funds monies were appropriately utilized and accounted for and believes that provision of the details and records will provide satisfactory answers to the inquiry."
Following 10News reporting on the funds for the closed hospital in 2020, the Department of Health and Human Services said it would "force repayment," but provided no details on how it would do so.
Senator Marsha Blackburn (R-Tenn.) and Congressman Tim Burchett (R-Knoxville) both demanded answers from HHS after the 10News report.
Blackburn requested a briefing by the department to explain why "hard-earned taxpayer dollars" were given to the shuttered Jamestown Regional Medical Center.
"There has clearly been a mistake if an out-of-business hospital that's millions behind on federal taxes and hasn't paid its former employees was able to receive federal COVID-19 assistance," Burchett said. "It's a shame this could happen."
Rennova CEO Seamus Lagan later defended the funding in a statement to 10News.
"We believe and endeavor to ensure the money has been used in accordance with the guidelines and terms of such relief," he said.
He said the hospital company had plans to re-open the Jamestown facility, which closed after issues with federal regulators. In the latest financial filing, Rennova said it looked to re-open the facility in the next 18 months, provided funding could be secured.