BLOUNT COUNTY, Tenn. — Blount Memorial Hospital leaders expect federal COVID-19 pandemic relief money and money from the sale of a Maryville property to arrive soon.
Interim CEO Jonathan Smith said at least one payment from FEMA is expected by the end of June, and the sale of the Morningview Village property in Maryville could close in July.
"We have a signed contract, and we are hopeful for an initial payment by the end of this month," Smith said in a statement to 10News about the FEMA funds.
Earlier this year, Smith said lawmakers helped to expedite the hospital's requests to the federal government to reimburse around $4.2 million in costs incurred during the pandemic.
The sale of the Maryville property is part of the hospital's agreement with the Blount County Commission, which was solidified in April and ended a few years of contention between the entities.
"We also continue to work through details on the sale of MorningView Village and Transitional Care Center, and are anticipating a close by July 1," Smith said.
The hospital is also considering a potential affiliation with another healthcare group, but nothing's set in stone.
"We are still exploring what a potential affiliation could look like, and learning more about potential partners," Smith said, in part, in a statement. "Because our process could involve a potential business transaction and nondisclosure agreements have been signed, we're not able to share more information at this time."
The hospital has been reporting profits over the past few months and is moving forward following its operating agreement with the county.
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 arrival of federal funds and money from the Morningview Village sale could help shore up the hospital's budget.