Hospital Debt causes concern
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Hospital Debt causes concern
By Shane Gilreath
SCN Contributing Editor
[email protected]
A sizeable delinquent account owed by Big South Fork Medical Center (BSFMC) dominated board discussions during the Oneida Water Department’s monthly meeting, leaving town officials grappling with the department’s largest outstanding debt. According to figures presented by General Manager Steve Owens during the Thursday meeting, BSFMC currently owes Oneida Water $29,447. That debt represents more than half of all delinquent accounts owed to the department, which total $49,813.
While the water board noted that residential delinquencies declined during the previous month, the hospital’s outstanding balance continued to grow, making the account an ongoing concern for the town. Moreso, the issue has become a recurring topic at water department meetings month after month, as the Oneida Mayor and Aldermen, who make up the water board, seek ways to address the mounting debt.
BSFMC is operated by Rennova Health, a publicly traded healthcare company that acquired the hospital in 2017 following the bankruptcy of its previous owner, Pioneer Health Services. As part of the purchase, Rennova acquired the hospital’s assets, reopening the facility later that same year, restoring important hospital services to Scott County residents under its current name.
While Rennova has reported financial challenges in past years, including debt restructuring efforts, they were not on hand to discuss the issue during Thursday’s meeting. As a result of the current delinquency, the town has been forced to explore alternatives for collecting the debt, including seeking guidance from the Tennessee Comptroller’s Office regarding available remedies and best practices for handling an account of this size.
Local concerns surrounding BSFMC come as many rural hospitals face financial pressure. Locally, officials indicated they will continue monitoring the account and assessing their options as they work to address the growing balance debt to the water department.
