MARYVILLE, Tenn. — The Blount Memorial Hospital CEO said he believes Blount County Mayor Ed Mitchell is hurting the hospital by interfering with their operations after he said he was exploring options to have another hospital take over its management.
On Wednesday, Mayor Mitchell recommended the University of Tennessee Medical Center take over the management of Blount Memorial Hospital. Dr. Harold Naramore, the Blount Memorial CEO, said he didn't know about these discussions.
"I was surprised, I was saddened, I was angry," Dr. Naramore said. "The reason was, I had no idea that was coming."
Blount County and Blount Memorial Hospital Inc. are mired in a lawsuit in Chancery Court.
Blount Memorial Hospital, Inc., the nonprofit company created by the Blount County Commission in 1945 to run the hospital, sued Blount County after Mayor Ed Mitchell tried to stop the sale of one of the hospital system's properties.
In 1996, BMH Inc. bought some property in Alcoa to set up its Springbrook Clinic. In October 2022, the non-profit tried to sell the property for $22 million.
The Mayor sent a letter to the Board Members of Blount Memorial Hospital on November 21, 2022. The letter said the sale "exceeds the scope of BHM's authority as manager of the Hospital to sell a major County asset."
The mayor argued Blount County owns all of the property purchased with Blount Memorial Hospital's revenues, though Dr. Naramore said all of it was purchased with hospital revenues and not county funds.
The Mayor also said he was disappointed with the "declining financial position" of Blount Memorial Hospital.
Dr. Naramore said Blount Memorial Hospital, like many hospitals nationwide, saw significant financial losses because of the COVID-19 pandemic. He said in the last fiscal year, they lost nearly $40 million.
He said having to stop elective procedures because of the COVID-19 pandemic and a nurse shortage contributed to the financial shortfall. Dr. Naramore said that pre-pandemic, nurses would cost the hospital about $20 an hour. During the pandemic, he said the hospital would have to contract nurses at over $100 an hour.
In a news release sent out Wednesday, Mayor Ed Mitchell said the hospital's financial situation led him to explore asking UT Medical Center to take over the hospital's operation.
"What he's doing is damaging the hospital," Dr. Naramore said. "And if it doesn't stop, it becomes harder and harder for us to correct our position."
Dr. Naramore said BMH is working to correct its financial position and is budgeted to lose $4 million this year, rather than $40 million.
In the lawsuit, BMH argued Dr. Naramore is trying to meet with Mayor Ed Mitchell to discuss their next steps but said he hasn't been able to meet with him.
The lawsuit said he had a meeting scheduled with Mayor Mitchell on December 5, 2022, but the Mayor "did not attend."
"It's very difficult for me to assess why the relationship has deteriorated when I can't get an audience with the Mayor," Dr. Naramore said.