ETOWAH, Tenn. — It’s been 15 months since McMinn County sold Woods Memorial Hospital to a doctors’ consortium for $4 million.
Last week the reorganized hospital hit two benchmarks: the owners wrote an $800,000 check to McMinn County and dedicated a new MRI unit.
“Twenty-four months ago, folks had a vision that this hospital needed to remain,” CEO Steve Clapp said. “Physicians stuck their necks out for this, and today helps fulfill part of the agreements.”
In addition to the MRI unit, the owners have installed new computer systems and renovated the nursing home chapel, the ICU waiting room, the cafeteria dining room and some patient rooms. They bought medical equipment and replaced roofing, air conditioning units and other equipment.
“We have spent or committed in excess of $2 million,” Mr. Clapp said.
The hospital also has reinstated 24-hour, 7-day per week surgery coverage and has improved 12 quality indicators set up by the federal government.
Mr. Clapp said that even with the dim economy, the hospital census continues to grow and the number of employees is holding steady at 305.
Former hospital board member Basil Nunley attended the celebration and said the new owners have given the hospital another chance.
“I appreciate getting it straightened out,” he said.
“We need for this hospital to stay here and grow, and we thank the doctors for their commitment,” County Mayor John Gentry said.
The doctors’ group that bought the hospital in December 2007 initially paid $1 million to McMinn County. They put $3 million in escrow and promised to pay $1 million a year for three years. That would allow a reserve for unforeseen problems, hospital officials said.
The county puts the payments into another escrow fund and will allow it to collect interest for seven years.
After that time, the collected interest can be used for health-related spending in the county.