BLOUNT COUNTY, Tenn. — The ink has dried on the final judgment between Blount County and Blount Memorial Hospital, ending a dispute that lasted around two years and spread into the Tennessee General Assembly.
On April 2, Blount County and BMH agreed to dismiss all existing lawsuits between them permanently, ensuring they could not return to court. The judgment also formally decreed whether Blount County or BMH owns property used by the hospital.
The judgment said that the main campus of the hospital, located at 907 E. Lamar Alexander Parkway, would be titled in the name of Blount County. Affiliated properties in different areas of the county, such as Alcoa and Morningview properties that the hospital earlier tried to sell, would be titled in the name of Blount Memorial Hospital, Inc.
Blount Memorial Hospital, Inc. is the nonprofit organization charged with overseeing and managing the hospital's operations. A question about whether Blount County or BMH Inc. formally owned property was at the heart of several lawsuits over the last two years.
The dispute began in June 2022 when Blount County leaders told the hospital they had concerns with how the hospital's former CEO, Dr. Harold Naramore, was chosen.
Leaders also spoke about concerns regarding the sale of an Alcoa property.
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 past few months have been lucrative for the hospital. Interim CEO Jonathan Smith said it turned its biggest profit in years in February. He said the hospital profited by $945,000 in February, the highest amount since June 2021.
February marked the third month in a row where the hospital reported a profit and Smith said the hospital expects to get funds from the Federal Emergency Management Agency soon.
The FEMA funds are connected to costs the hospital incurred during the COVID-19 pandemic.