The Jellico Board of Mayor and Aldermen voted last Thursday to terminate the hospital lease agreements with Boa Vida Healthcare and Mission Healthcare Partners/Progressive Health.
The votes were quick, unanimous and happened without discussion.
Jellico Mayor Sandy Terry said after the meeting that she is talking with four different potential hospital operators.
Jellico City Attorney Elizabeth Burrell sent a letter, via certified mail and email, to Kirnjot Singh, Bob Wade and Nelson Mullins, listed with Jellico Regional Hospital, LLC; and Julie Wells and Quentin Whitwell of Progressive Health, LLC, regarding a notice of default.
“This letter is intended to serve as a notice of default under said lease agreement dated April 21, 2021, and later assigned on or about February 15, 2024, by the Board of Mayor and Aldermen for the City of Jellico,” Burrell wrote. “It is my understanding there is a dispute regarding the effectiveness of the assignment, so I have included all entities with any alleged interest in the operation of the facility under the original lease or the assignment.”
The letter was dated March 21, the day of the board meeting.
“This letter serves as formal notice that Jellico Regional Hospital, LLC, and/or Progressive Health, LLC, is currently in noncompliance with Paragraph IV of said lease agreement entitled ‘Use.’ More specifically, Jellico Regional Hospital, LLC, and/or Progressive Health, LLC, has allowed the facility to close and said facility is not being operated, or even open, as contemplated in the lease,” Burrell writes in the letter. “Accordingly, this letter serves as formal notice under Paragraph XV that if you fail to come into compliance with this section within 30 days of the date of this letter, the landlord, city of Jellico, will immediately terminate the lease.”
Burrell gave a Press a copy of the letter after last Thursday’s meeting.
“I would prefer to terminate the lease with the consent of the parties without waiting for the 30-day ‘cure period’ as all parties have acknowledged they have no interest in the continued operation of the hospital,” Burrell writes in the letter. “Please advise if you are willing to enter into a mutual release of the lease. Furthermore, the utilities were disconnected by either Jellico Regional Hospital, LLC and/or Progressive Health, LLC, which is untenable given the nature of the facility. The city of Jellico has reconnected the utilities and provided security for the facility during the transition period until the lease is terminated — which frankly should be the responsibility of the entity who is responsible for the lease. The city of Jellico would cooperate to allow access to retrieve property still in the facility. Please advise your position as to the above.”
Jellico Regional Hospital closed on March 9, and it’s uncertain when it will be open again.
Terry told the Press on March 5 that Progressive Health CEO Quentin Whitwell informed her that afternoon that Progressive Health would be pulling out of operating Jellico Regional Hospital.
“That’s all the information that I have at this time,” Terry said at that time.
Later on March 5, Jellico Regional Hospital interim CEO Michele Sexton told the Press in an email: “I am so heartbroken to tell you that I have resigned today as interim CEO. I am praying for the community and all involved. That’s all I can say for now.”
The next day, on March 6, Burrell told the Press: “Jellico hospital has been found to be in immediate jeopardy by CMS [Centers for Medicare and Medicaid Services] and a closure plan is currently being drafted. Patients are being diverted, effective immediately.”
On March 7, notes were placed on the doors at Jellico Regional Hospital, announcing the impending closure of the hospital on March 9 at 7 a.m.
The note read: “The hospital is currently on diversion and will be closing the hospital and emergency room, effective March 9, 2024 at 7 a.m.”
The note then advised that the nearest emergency rooms were LaFollette Medical Center and Baptist Health Corbin.
In a strange wrinkle, the Press was emailed a press release, containing basically the same closure information as the note on the hospital’s doors, and the email was sent from anonymousjellico@gmail.com.
“This hospital in Jellico has announced the closure of its emergency room and hospital, effective March 9, 2024 at 7 a.m.,” the press release read. “The hospital is currently on diversion, and this closure will affect all hospital operations. Patients who would normally seek emergency care are encouraged to visit the nearest alternative facilities for medical attention.”
The press release again mentions Baptist Health Corbin and LaFollette Medical Center.
On March 11, parking at the hospital parking lot was blocked, and there was caution tape on one end. Only security personnel were at the building. There was information on a note on the door about where to find medical records if needed.
The note read: “If you are in need of your medical records from March 2023 to March 9, 2024, please contact Panola Medical Center in Batesville, Mississippi at 662-712-2406.”
This all happened after a several-months-long push from Progressive to take over operations of the hospital: first, by asking the Jellico Board of Mayor and Aldermen to transfer the lease from former operator Boa Vida Healthcare to Progressive.
When that initial vote to transfer the lease failed, 4-3, Progressive found a legal loophole, subleasing from Boa Vida to take over operations of the hospital.
On a second vote in February, the board relented, voting 5-1 to officially transfer the lease from Boa Vida to new operator Progressive Health and sever the city’s ties with Boa Vida.
Progressive Health was to be the new operator of the hospital, which was to become Progressive Health of Jellico.
Whitwell did not reply to an email from the Press earlier this month.
