Jellico (Tenn.) Medical Center closed March 1, days after the city council voted to send a contract termination notice to the hospital's operator, Rennova Health, according to TV station WBIR.
The hospital, owned by the city, has not admitted a patient since November and often doesn't have enough staff to provide adequate patient care, city attorney Elizabeth Burrell told TV station WATE. She said West Palm Beach, Fla.-based Rennova has breached its contract by not operating Jellico Medical Center as an acute care hospital, according to WBIR.
Rennova Health management said the city council's contract termination decision left the company with no option but to close the hospital.
"Repercussions of the decision made by the City of Jellico at last week's public board meeting mean it is no longer viable for Rennova Health, Inc. to consider the financial support or investment needed for Jellico hospital to continue to operate in any capacity on a daily basis," Rennova said in a statement to WVLT.
Rennova CEO Seamus Lagan said the hospital needs significant investments of about $500,000 for upgrades, and the city council is aware of deficiencies at the hospital.