Tennessee hospital to lose Medicare contract

Jamestown (Tenn.) Regional Medical Center is facing financial troubles and is set to see its Medicare and Medicaid funding cut in June, according to The Tennessean.

On May 29, CMS announced the 85-bed hospital will no longer receive Medicare and Medicaid reimbursements as of June 12 because it does not meet conditions of participation.

The hospital, which recently halted patient admissions, is struggling to stay afloat. In April, power was shut off to parts of the hospital because of a past-due electricity bill totaling $33,000. As of this month, the hospital owes more than $4 million to 200 vendors and has run out of necessary supplies, according to The Tennessean, which cited CMS inspection reports.

According to the inspection reports, the hospital withheld income taxes or Social Security funds from employees' paychecks but never deposited those funds with the government. One employee told inspectors that her Social Security payments had not been made in three years, according to The Tennessean.

The hospital, owned by West Palm Beach, Fla.-based Rennova Health, was reportedly preparing to close May 16 but ultimately remained opened on a day-to-day basis. On May 21, Jamestown Mayor Lyndon Baines told local TV station WBIR that the hospital could close "any day now."

More articles on healthcare finance:

CMS terminates Kentucky hospital's Medicare contract
10 hospitals seeking CFOs
10 latest hospital, health system credit downgrades

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