BLOUNT COUNTY, Tenn. — Blount Memorial Hospital is reporting its best financial numbers in years. Interim CEO Jonathan Smith said employees are working to bring the best hospital experience possible to patients and it's paying off.
"We are focused on the patient, the emergency room, we've had a lot of work there and we believe that's the front door to our hospital," Smith said. "And because of that, we've had an increased volume in patients coming through our doors, which has led to an increase in admissions."
Smith said employees are working hard on patient satisfaction.
"All of those things are moving in the right direction, which has allowed us, over the last six months, to show about $3.3 million in operating margins," he said. "Which is basically... we're right at break even as we come into our last month of the fiscal year."
Smith said the hospital is at a $200,000 gain from its total margin, including its investments, some interest expenses and non-operating items.
"So for the year, that has moved positive," Smith said. "And that's the first time that number has been positive since fiscal year 2021."
Operating figures from the past six months show growth across the board for the hospital:
- December 2023 - $208,000
- January 2024 - $405,000
- February 2024 - $945,000
- March 2024 - $110,000
- April 2024 - $1,041,000
- May 2024 - $680,000
Smith said this week the hospital received some of the FEMA money it's been asking for to recoup for costs incurred during the pandemic.
"Monday, we received $2.5 million out of what was outstanding to us," he said, adding he's thankful that local politicians helped the hospital get the money ahead of the end of the fiscal year.
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 the federal funds and the pending sale of Maryville's Morningview Village is helping the hospital's finances.
Smith said Morningview Village's sale should go through on July 1. He also said the employees are key to the hospital's success, adding he'd like to hire more doctors and facilities.
The hospital has also added new signage to make it easier for patients to get around.
He said he wants the people of Blount County to use the hospital if needed.
"We're here for you," Smith said.