Pioneer Health Services has notified the State of Tennessee that it could potentially close its Scott County hospital although local administrators remain hopeful that the worst-case scenario will not pan out, reports the Oneida Independent Herald.
The Magee, Miss.-based corporation filed its 30-day notice with the state last week, as required by law. Tony Taylor, CEO of Pioneer Community Hospital of Scott, said his managers learned of the development Tuesday morning.
…Taylor, who has been chief administrator at the local hospital since Pioneer opened the facility in 2012, said the notice is not a guarantee that the the hospital will close.
“This is just a way of them fulfilling their obligation of notice,” Taylor said. “After June 26, they could close the hospital, if they chose to do so.”
PHS is currently restructuring, two months after filing for Chapter 11 bankruptcy protection. As part of that bankruptcy filing, PHS closed its MedSurge program at the Scott County facility, ending inpatient services while keeping all outpatient services — including surgery, physical therapy and diagnostics, among others — along with its emergency room.
Reportedly, PHS has been willing to entertain offers to sell the Scott County hospital. It is not known whether the corporation has been able to attract potential suitors.
Taylor said Pioneer has put no timeline on the hospital’s future.
…If the hospital closed, ownership of the real estate would revert to Scott County. The county is currently in the midst of a 10-year contract with Pioneer that requires the facility — ownership of which was transferred to Pioneer in 2012 at no cost — to be operated as a hospital or be returned to the county.
However, that, too, could be complicated. First National Bank currently has a lien on the property after Pioneer borrowed $400,000 for improvements in 2015. The Internal Revenue Service has also filed a separate $500,000 tax lien on the property due to back taxes owed by the corporation.