BLOUNT COUNTY, Tenn. — Blount Memorial Hospital turned its biggest profit in years last month. Interim CEO Jonathan Smith said the hospital profited $945,000 in February, the highest amount since June 2021.
"This is the third consecutive month the hospital has been profitable," Smith said. "Operating income in December 2023 was $208,000, and January’s operating income was $405,000."
Blount Memorial may see some more income soon, as Smith said lawmakers are helping to expedite its requests to FEMA to reimburse $4.2 million in costs incurred during the pandemic.
"We have worked closely with Congressman Burchett and Green’s offices along with State Representative Moon through this process," Smith said. "There are great indications that these funds will be coming to us soon."
Smith said he has "every reason to believe" the hospital's financial growth will continue and attributes the profit to several factors.
"Our focus on emergency room operations has been a key factor," he said. "Our volumes there are increasing and that has turned into an increase in admissions over the three-month period. We’re focusing heavily on patient satisfaction and quality and that has positive impact on our volumes."
Smith said he extends gratitude to Blount Memorial patients.
"Our patients are at the heart of everything we do and every decision we make," Smith said. "We take every opportunity we can to say thank you for choosing Blount Memorial for your care. Thank you for trusting us to be part of your health and healing journey. We understand it is a privilege to serve this community, and we remain committed to providing high-quality, compassionate care."
The good news for the hospital follows the end of a contentious relationship between the hospital and the Blount County government.
"The management agreement is the first of its kind in our 77-year history," he said. "It’s the culmination of hard work among smart people who want the best for the community – so it feels pretty good."
Last week Blount County Commissioners voted in favor of an agreement between the hospital and the government that ends all litigation between them and allows for the sale of a Blount Memorial facility in Maryville.
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," Smith said.