For the first time in the 77 years since Blount Memorial Hospital was established, the terms of the relationship between the hospital and the Blount County government are clear.
In a move that will settle several lawsuits and end years of dispute, the Blount County Board of Commissioners voted in favor of accepting a management agreement that outlines those ties during a meeting Thursday, March 21.
Commissioners took up the management agreement two days after Blount Memorial Hospital’s board of directors also voted, unanimously, to accept it. The agreement answers a series of questions that have proved contentious in recent years: Who owns Blount Memorial and its property — the hospital’s managers or the government? Can the county select a manager for the hospital?
According to the document, the hospital — the campus located on East Lamar Alexander Parkway — is titled in the county’s name. The hospital’s outlying properties, such as its health care facility in Springbrook, are titled as belonging to the hospital’s long-term manager, Blount Memorial Hospital Inc., which holds them in trust for the county. And the hospital or the county — or both the government and Blount Memorial — could end the agreement under some conditions.
A two-thirds vote of the commission is enough to end the agreement; other means of doing so are also provided for. The hospital’s board also can decide to end the agreement.
Commissioners’ votes Thursday make official a monthslong turn toward conversation, rather than confrontation, for the hospital and the government. Disagreements encompassing efforts to sell some Blount Memorial properties, the composition of the hospital board and hospital administration first started to abate during the fall of 2023, following successful legal mediation.
Agreements
The paperwork ending the lawsuits will be filed soon.
“The parties agree to submit the Settlement Documents to the appropriate courts immediately upon the execution of this Agreement,” the agreement reads.
Previously controversial proposals to sell some hospital properties and change the hospital’s organizing documents — its charter, specifically — have made few major waves in recent months, as the hospital and the county returned to the bargaining table.
In a statement emailed to The Daily Times after the hospital board’s vote Tuesday, interim hospital CEO Jonathan Smith wrote, “I am optimistic about our relationship with the county and how it is growing stronger every day. Both parties are dedicated to resolving our differences and working cooperatively for the health and well-being of our community.”
County officials, including Mayor Ed Mitchell, have likewise said that talks have taken a positive turn lately.
Earlier government meetings concerning the hospital — throughout 2022 and 2023 — featured hours of comments from members of the public, Blount Memorial leadership and government officials. Three votes on Blount Memorial Thursday — concerning the agreement, charter changes and assets valued at over $22.8 million — took minutes.
Partners and charters
The hospital and county’s work to consider a future outside partner for Blount Memorial, going forward, will also continue, the agreement indicates.
Changes stemming from a possible partnership are forthcoming. But other shifts in how the hospital is led are now in effect.
In addition to the commissioners’ vote on the management agreement Thursday, they also approved a change to the hospital charter. The revised document outlines the process for appointments to the hospital board, describes term limits for directors, provides for their removal and specifies that current members of the county and Alcoa city commissions and Maryville City Council cannot sit on the hospital board, among other things.
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