The Jellico City (Tenn.) City Council has approved plans for an Indiana healthcare system to take over operations of a closed hospital in the northeast Tennessee city, according to a May 4 report from Knoxville, Tenn., news station WVLT.
The Jellico Medical Center closed March 1, days after the Jellico City Council voted to send a contract termination notice to the hospital's operator, Rennova Health. City leaders said West Palm Beach, Fla.-based Rennova breached its contract by not operating Jellico Medical Center as an acute care hospital.
Rennova Health management said the city council's contract termination decision left the company with no option but to close the hospital.
Now, the city council has approved plans for Crown Point, Ind.-based Boa Vida Healthcare to take over the facility. The city and Boa Vida had been in contract negotiations since March 31, according to the La Follette Press.
Boa Vida is set to take over the facility in three to six months, according to WVLT.