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Blount Memorial Hospital enters into early agreement to become part of South Carolina-based healthcare company

The South Carolina-based healthcare group said it has begun negotiating with the Maryville hospital after the county approved a Letter of Intent.

BLOUNT COUNTY, Tenn. — Blount Memorial Hospital could soon be under new leadership.

Prisma Health, a South Carolina-based nonprofit healthcare group, announced Thursday evening that it has formally begun negotiating with the Maryville hospital to have it join its organization.

The announcement came shortly after the Blount County Commission unanimously passed a resolution Thursday evening approving the Letter of Intent between Prisma and the hospital.

“The Blount Memorial board and leadership determined that joining a high-performing health system was a necessary next step to achieve next-level outcomes in patient care, operating efficiencies, and growth,” said Mark O’Halla, president and CEO of Prisma Health. “Following a competitive evaluation process involving several highly regarded organizations, the Blount Memorial Hospital Board, the Blount County Commission and hospital leaders chose to join Prisma Health because of our outstanding results in quality, safety, patient experience, community health status, operating performance, and market-leading growth.”

If the deal makes it through regulatory approvals and crosses the finish line, Prisma said Blount Memorial could join as soon as late 2024. It would mark Prisma’s first venture to expand out of South Carolina and into Tennessee.

Prisma is based primarily out of Greenville, South Carolina and currently operates 18 hospitals and dozens of other healthcare facilities in the Palmetto State. It’s the largest such organization in the state.

“From our very first introduction to Prisma Health, we saw a strong commitment to always putting the patient first, which is something that Blount Memorial has focused on to ensure positive health outcomes for our patients and community,” said Blount Memorial Hospital interim CEO Jonathan Smith. “We’re excited to learn more about the ways Prisma Health operates for the benefit of its patients, and we are excited to implement some of its next-level technologies in Tennessee.”

The news comes after Blount Memorial and Blount County leaders resolved a nearly two-year dispute over control of the hospital’s future. The two were at odds with each other over who had control under the longstanding charter agreement to make certain large decisions, including a push to put the hospital under the new leadership and disagreements over the sale of a property in Alcoa. The county and the hospital eventually agreed to settle those disputes earlier this year.

In a statement Thursday night, Blount Memorial Hospital said it has been working for months with Blount County leaders to identify potential partners for the hospital.

“Representatives from both entities, including physicians from the hospital’s medical staff, worked closely with the advisors in a comprehensive, multi-month exploration process. The evaluation involved in-person meetings at Blount Memorial and at potential partners’ corporate offices as well as visits to their local hospitals and a thorough analysis of written proposals. Prisma Health emerged as the desired partner,” Blount Memorial said.

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