NASHVILLE, Tenn. — UPDATE (May 15): On May 15, Governor Bill Lee signed a bill into law that allows the Blount County Commission to change the management of the county's only hospital.
It had previously passed the House of Representatives, and on April 19, Representatives concurred with a Senate amendment in an 86-10 vote.
The amendment says that if the county ever stops owning or managing the hospital, it must require that the structure painting signs in prominent places that designate it as "Blount Memorial Hospital" in the agreement between it and the seller.
The amendment says the signs would need to remain up as a "tribute to the men and women who served this state and our country with valor during World War II."
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A bill that could allow the Blount County Commission to change the management of the county's hospital passed the Tennessee House of Representatives on Monday. It is expected to be taken up by the Senate on April 18.
The bill, SB 1548, was introduced by Senator Art Swann (R - Maryville). It allows the county to operate and manage the hospital or may maintain a nonprofit organization to manage it. It also explicitly says any nonprofit organization that may manage the hospital would not be deemed the owner of the hospital's assets.
The bill follows months of controversy surrounding Blount Memorial Hospital.
In June 2022, Blount County leaders wrote a letter to the hospital's board of directors explaining their concerns over how the board was choosing its CEO. Blount County Mayor Ed Mitchell was one of the leaders who signed the letter. It said that the mayors felt the process to find a new CEO did not strictly follow state law and hospital policies.
Then in November 2022, Mitchell sent another letter to the hospital saying he had "grave concerns" about how BMH is operated. In it, he said that BMH was appointed to operate the hospital on behalf of the county, but it never became the owner of any hospital assets.
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.
In March 2023, the Blount County Commission approved talks between Mitchell and the University of Tennessee Medical Center about the future of the hospital.
Blount County Mayor Ed Mitchell had previously alleged that the facility was purchased with county revenues, making it county property. The hospital said that it was built without county funds, and said it was not licensed as a hospital, and so argued they were allowed to sell it.
"In general, we need to work through strategies that help address our operational needs and one of those are cash, so we need to continue to identify strategies to bring cash to Blount Memorial," Dr. Harold Naramore, the CEO, previously said.
In 2019, the hospital refinanced its revenue bonds, meaning the bonds were backed by the revenue of Blount Memorial Hospital, Inc. The hospital said it lost around $40 million due to the pandemic.