BLOUNT COUNTY, Tenn. — Blount Memorial Hospital and Blount County may come to an agreement over how the hospital is operated soon. Blount County commissioners discussed three resolutions at a work session on Tuesday evening pertaining to the hospital.
The resolutions include an operation agreement between the entities, a resolution ending any litigation between the parties and a resolution allowing the hospital to sell a facility it owns in Maryville.
Blount County Commissioner David Wells sponsored all three and said he appreciates the opportunity to be part of this process.
"The hospital is a valuable asset to our community," Wells said. "It's something that's been established for a long period of time, and I'm pleased to step into any type of leadership capacity to show we desire to have this community hospital around for a long time, and we want to do it the right way."
Wells said the proposal about the management agreement is "the most significant."
That proposal approves an amended charter agreement between the county and Blount Memorial Hospital, Inc. The agreement would give BMH the authority to manage and oversee the county's only major hospital. It would implement a nine-person board of directors, mostly made up of people approved by elected bodies in Blount County, Maryville and Alcoa.
"This particular resolution solidifies what their expectations are to operate and manage the hospital, and that's not something that's been in place," Wells said. "So, for the first time being established, which is great, we have an agreement on how we are going to operate and go and be clear (about it.)
Well said by doing that, it should end all litigation between the parties.
The controversy between BMH and the Blount County Commission started in June 2022, when Blount County leaders wrote the hospital a letter saying they had concerns with how the hospital's former CEO was chosen — Dr. Harold Naramore. Leaders also spoke about concerns regarding the sale of a property in Alcoa.
Later in December 2022, BMH filed a lawsuit that asked for a ruling to allow BMH to proceed with plans to sell a facility in the Springbrook area for around $22.2 million. It was opened in 1996 and provided outpatient care, as well as other healthcare services, according to a press release from the hospital. According to the lawsuit, the sale was meant to "relieve its current financial strain."
BMH argued the sales were within its rights, and the money would be used to shore up its tight budget. Months of dispute followed, and county leaders brought more concerns about the hospital's leadership. In May 2023, a state law was passed that explicitly allowed Blount County to change the hospital's leadership.
The hospital then filed another lawsuit against the county and state, alleging the law was unconstitutional. Later, the hospital told the county that it may not be able to meet its debt obligations without implementing a new "cash flow plan," and asked the county to approve the sale of another property in Maryville, known as Morningview Village.
On Jan. 1, 2024, Naramore stepped down as CEO after county commissioners said they wouldn't approve any proposal from the hospital if he was still in the role. Naramore stepped down after less than two years on the job.
The resolutions are expected to be voted on during the commission's March 21 meeting.
Blount Memorial Hospital officials said in a statement that they're working with the county on the agreement.
"We have been working in good faith with Blount County Government to discuss and make progress on this item," said BMH Interim CEO Jonathan Smith.
