County Signs APA With Pioneer Health Services

Huntsville, TN (2013-03-25) Three weeks after reaffirming its interest in assuming the operations and ownership of the Scott County Hospital, Pioneer Health Services has signed an Asset Purchase Agreement to acquire the 58-year old facility.

On Friday, Scott County Mayor Jeff Tibbals and Joe McNulty of Pioneer Health Services, Inc. of Magee, MS signed the final negotiated version of the Asset Purchase Agreement on the Scott County Hospital, which, subject to the approval of the Tennessee Attorney General and other state and federal licensing agencies, will result in the healthcare company assuming title and operations of the facility.

While Friday’s document signing was a significant development in the ongoing effort to reopen the aging facility, the consummation of the transition is subject to a number of state and federal approvals.  First and foremost, both parities must submit a lengthy filing to the Tennessee Attorney General for its review of the transaction’s compliance with the Hospital Conveyance Act of 2006.  Once filed, the Attorney General’s office will have 45-days to review the submittals.  After its evaluation, the office can either issue a no-action letter or find the transaction is not in the best interest of the public.  If a no-action letter is issued, then Pioneer Health Services must begin the arduous task of filing all necessary state and federal paperwork to attain the proper licenses to operate the facility, including a medical provider number from the Centers for Medicare and Medicaid Services (CMS).  Upon receipt of its essential licenses, including reactivation of the facility’s state license by the Tennessee Board of Licensing for Health Care Facilities, the hospital, over the course of the subsequent 60 days would reopen and provide limited services, including an extended hours medical clinic.  Immediately upon receiving its acute care approval, Pioneer would then file for Critical Access provider status for the facility, which, if granted, would result in the reopening of the emergency department.

Given the number of approvals that must be attained before the transaction is finalized, the reopening of the hospital will likely occur in late Summer or early Fall.