The AG office said in a letter it could not approve the sale until the healthcare organizations provided assurance that approximately $2.5 million in voluntary contributions to local governments and an unnamed foundation proposed by Mountain States as part of the deal would go to healthcare-related services as required by state law.
The AG also said the deal required approval from Erwin and Unicoi County regulators before the state could give it the green light.
The UCMH board will meet Thursday to discuss next steps.
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