Knoxville, Tenn.-based Covenant Health and the Claiborne County Commission have signed a letter of intent for Covenant to run Claiborne County Hospital in Tazewell, Tenn., along with its ambulance service and 100-bed nursing home, according to a Claiborne Progress report.
The 85-bed, county-owned hospital intends to enter into a long-term lease agreement with Covenant, according to the report. The affiliation is expected to become final before the end of the year, following compliance with regulatory requirements, completion of the due diligence process and approval of a definitive lease agreement.
Claiborne County began its search for operators interested in running the hospital in May. Along with Covenant, Knoxville-based Tennova Healthcare and Middlesboro, Ky.-based Appalachian Regional Healthcare sent representatives to visit the hospital.
Claiborne County Hospital faces millions of dollars in cuts and needed improvements. Earlier this year, the hospital board asked the county for more than $3 million to implement a new electronic health records system, and hospital officials have also projected up to $23 million in Medicare payment cuts over the next 10 years.
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