MARYVILLE, Tenn. — Blount County Commissioner Misty Davis called a potential partnership between the Blount Memorial Physicians Group and Covenant Health a "hostile takeover" in an email to 10News.
"This is the latest from the desperate pirates trying to remain in control at Blount Memorial Hospital," Davis said.
Blount Memorial Hospital and Covenant Health announced they're discussing a possible joint venture on Friday.
"The joint venture would involve the creation of a new company that would own and operate a medical group, but not involve the two health systems' hospitals," a press release said.
Responding to emailed questions, Blount Memorial Hospital Senior Communications Manager Josh West said the discussions include all physicians who are part of the Blount Memorial Physicians Group.
"Patients would have no interruption to their care and would continue to receive care from their individual providers," West said in an email. "Services not currently available in Blount County would be more readily accessible through Covenant Health's network should the patient and the physician choose that as part of the patient's care."
Commissioner Davis said she believes the change comes because the Blount County Commission and state legislators are trying to change the state law governing ownership of Blount Memorial Hospital.
In 1945, the Tennessee General Assembly passed the Private Acts, giving Blount County the authority to create a hospital. The act gave the Blount County Commission the authority to turn over operation and maintenance to a non-profit corporation.
Blount County created Blount Memorial Hospital, Inc., a non-profit corporation. Blount Memorial Physicians Group is a for-profit corporation, created in 2002 according to their state business record.
An amendment to the Private Acts of 1945, passed by the Tennessee House and Senate says, "Any non-profit corporation selected to serve as the manager of the hospital should not be deemed the owner of any assets of the hospital." The bill has not been signed by the Governor.
Art Swann's office, the Senate sponsor of the bill, said he carried that bill at the request of the Blount County Commission.
"BMH, Inc’s claims of ownership of assets purchased with Blount Memorial Hospital’s monetary proceeds are totally absurd," Commissioner Davis said. "For example, let’s say that a manager of a Walmart store used proceeds from Walmart sales to purchase a building across the street from the particular Walmart store (with or without Walmart’s expressed consent). Ask yourself, who would that building actually belong to?"
10News asked Blount Memorial if the amendments to the Private Acts of 1945 prompted the potential separation of Blount Memorial Physicians Group and the potential merger with Covenant Health.
"What has prompted the change is the goal of continuously improving patient care, improving access to care and improving the financial performance of the Blount Memorial Hospital, Inc. health system," West said.
West said Blount Memorial Hospital did not want to comment directly on Commissioner Davis's claims.