West Palm Beach, FL (2018-11-26) Rennova Health, the parent of Scott County Community Hospital which operates Big South Fork Medical Center in Oneida, has announced its intentions to acquire Jellico Community Hospital in Jellico, TN.
On Monday, Rennova Health announced it had entered into a definitive asset purchase agreement to acquire Jellico Community Hospital, a 54-bed acute care facility in Jellico, TN. The acquisition would be the company’s second this year, as Rennova acquired Jamestown Regional Hospital in Jamestown, TN in June.
In addition to the hospital, Rennova will also acquire CarePlus Center in Williamsburg, KY, an outpatient clinic offering primary care, along with sophisticated diagnostic imaging services including X-ray, mammography, bone densitometry, CT scans, and ultrasound. The clinic also provides physical therapy, and laboratory services on a walk-in basis.
“This third hospital is situated near our Oneida and Jamestown based hospitals and further expands our footprint in the rural hospital sector in keeping with our business strategy,” said Seamus Lagan, CEO of Rennova.
Just last week, Jellico Community Hospital announced it would suspend obstetric services. “After careful consideration, it is with sincere regret that we announce that the Jellico Community Hospital Board of Directors, with counsel from Community Hospital Corporation, arrived at the difficult decision to close OB services,” Interim CEO Gene Miller said. The hospital is slated to end labor and delivery services at midnight on December 9, 2018. Miller pointed much of the blame on the State of Tennessee, which has declined to expand Medicaid. “Medicaid is our major payer for deliveries and newborn care, but Tennessee did not expand Medicaid and we are not able to subsidize this program on our own,” Miller said. In Tennessee, the federal Medicaid program is administered by the state’s TennCare program.
Jellico Community Hospital is an operational 54-bed acute care facility that offers comprehensive services, including diagnostic imaging, radiology, surgery (general, gynecological and vascular), nuclear medicine, wound care and hyperbaric medicine, intensive care, emergency care, and physical therapy. In 2015, Jellico Community Hospital was one of 251 hospitals out of 3,500 across the country to receive a “5-star” rating for patient satisfaction, according to a Hospital Consumer Assessment of Healthcare Provider and Systems (HCAHPS) survey conducted by the Centers for Medicare & Medicaid Services.
The acquisition is expected to close in the first quarter of 2019 and is subject to customary regulatory approvals and closing conditions.
“We believe having a number of hospitals in the same geographic location creates a number of synergies and efficiencies and we look forward to this acquisition adding to revenue and value in the first quarter of 2019,” Lagan concluded.