Among the issues outlined in the lawsuit are claims that only the hospital board and management have the power to operate and manage Blount Memorial and that Blount County local government has no authority to remove any hospital directors. In late November, the Blount County Board of Commissioners voted to remove the entire hospital board, including the immediate removal of three members appointed by Blount County itself.
The lawsuit follows reports the hospital is seeking to achieve nonprofit status, a move which could take several months at least.
The hospital is on course to lose about $70 million in 2022.
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