News Alert: Rural Tennessee hospital shuttered amid reported financial woes

Two nearby rural facilities with the same owner remain open amid the crisis.

A troubled rural Tennessee hospital has been forced to close.

As reported by RACmonitor Thursday, local reports today indicate that Jamestown Regional Medical Center in northern Tennessee had its doors locked as of Thursday evening, with a sign at the entrance noting that the closure is expected to be temporary.

Two weeks ago, The Tennessean reported that federal authorities announced that they were suspending Medicare and Medicaid payments to Jamestown Regional as of Wednesday, June 12 because it was “so woefully broke that it cannot pay its employees, its vendors, or even keep the lights on.” The largest Nashville-area newspaper reported that portions of the 85-bed hospital recently lost power because a $33,000 electricity bill had not been paid; that officials had reported net losses of more than $4.7 million over the past three years; and that the hospital had been low on supplies and stopped admitting patients transported by ambulance.

At least one doctor reportedly recently quit his job at the hospital because he felt the situation was “unsafe,” and federal officials also even alleged that the hospital had withheld taxes from employees’ paychecks, but then kept the money instead of paying it to the government.

“Reimbursement is a major funding source for any hospital, so termination is likely a death knell for a hospital that was already in a desperate situation,” the report read.

The closure was mentioned in Becker’s Hospital Review CFO newsletter distributed via email Friday, with notice that Michael Alexander, who began serving as CEO of Jamestown Regional on Monday, June 10, told a local TV station that he is trying to get the hospital’s federal funding reinstated. When he accepted the job, neither he nor Rennova Health, the West Palm Beach, Fla.-based company that owns the hospital, reportedly knew that the Medicare and Medicaid dismissal was imminent.

Another local newspaper, the Independent Herald, noted that the embattled hospital’s closure came less than a week after Rennova announced it was laying off 20 of 140 employees at the facility. An email the paper sent to a Rennova spokesperson seeking clarification on the closure was not immediately answered; according to an automated reply, the spokesperson was out of the office for the week.

“Exactly four weeks earlier, the hospital was apparently just hours away from closing, before an 11th-hour change of plans. The publicly stated reason for the near-closure was an ultimatum from the federal Centers for Medicare & Medicaid Services (CMS) that the hospital close or be forced to close, due to unpaid taxes,” the Independent Herald report reads. “However, a CMS spokesperson later told the Independent Herald that the agency does not force hospitals to close their doors. No further explanation for the near-closure was ever given.”

Rennova reportedly expressed confidence that the situation is salvageable, but optimism wasn’t palpable.

“We recognize that JRMC is an integral part of the community,” Rennova said in a terse statement. “We look forward to filling the healthcare needs of our customers and the long-term success of the hospital to serve the needs of the community.”

The closest major hospital to Jamestown Regional appears to be Livingston Regional Hospital, approximately 45 minutes away. There are also Rennova-owned hospitals in Oneida and Jellico, towns of similar size to Jamestown (several thousand residents), but they are closer to an hour and 90 minutes away, respectively.

Comment on this article

Print Friendly, PDF & Email
Facebook
Twitter
LinkedIn

Mark Spivey

Mark Spivey is a national correspondent for RACmonitor.com, ICD10monitor.com, and Auditor Monitor who has been writing and editing material about the federal oversight of American healthcare for more than a decade.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Leveraging the CERT: A New Coding and Billing Risk Assessment Plan

Leveraging the CERT: A New Coding and Billing Risk Assessment Plan

Frank Cohen shows you how to leverage the Comprehensive Error Rate Testing Program (CERT) to create your own internal coding and billing risk assessment plan, including granular identification of risk areas and prioritizing audit tasks and functions resulting in decreased claim submission errors, reduced risk of audit-related damages, and a smoother, more efficient reimbursement process from Medicare.

April 9, 2024
2024 Observation Services Billing: How to Get It Right

2024 Observation Services Billing: How to Get It Right

Dr. Ronald Hirsch presents an essential “A to Z” review of Observation, including proper use for Medicare, Medicare Advantage, and commercial payers. He addresses the correct use of Observation in medical patients and surgical patients, and how to deal with the billing of unnecessary Observation services, professional fee billing, and more.

March 21, 2024
Top-10 Compliance Risk Areas for Hospitals & Physicians in 2024: Get Ahead of Federal Audit Targets

Top-10 Compliance Risk Areas for Hospitals & Physicians in 2024: Get Ahead of Federal Audit Targets

Explore the top-10 federal audit targets for 2024 in our webcast, “Top-10 Compliance Risk Areas for Hospitals & Physicians in 2024: Get Ahead of Federal Audit Targets,” featuring Certified Compliance Officer Michael G. Calahan, PA, MBA. Gain insights and best practices to proactively address risks, enhance compliance, and ensure financial well-being for your healthcare facility or practice. Join us for a comprehensive guide to successfully navigating the federal audit landscape.

February 22, 2024
Mastering Healthcare Refunds: Navigating Compliance with Confidence

Mastering Healthcare Refunds: Navigating Compliance with Confidence

Join healthcare attorney David Glaser, as he debunks refund myths, clarifies compliance essentials, and empowers healthcare professionals to safeguard facility finances. Uncover the secrets behind when to refund and why it matters. Don’t miss this crucial insight into strategic refund management.

February 29, 2024
2024 ICD-10-CM/PCS Coding Clinic Update Webcast Series

2024 ICD-10-CM/PCS Coding Clinic Update Webcast Series

HIM coding expert, Kay Piper, RHIA, CDIP, CCS, reviews the guidance and updates coders and CDIs on important information in each of the AHA’s 2024 ICD-10-CM/PCS Quarterly Coding Clinics in easy-to-access on-demand webcasts, available shortly after each official publication.

April 15, 2024

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

SPRING INTO SAVINGS! Get 21% OFF during our exclusive two-day sale starting 3/21/2024. Use SPRING24 at checkout to claim this offer. Click here to learn more →