Hospital purchase agreement signed by all parties

-A A +A
By The Staff



It looks like Harriman officials concerned about the financial situation at Roane Medical Center can breathe a sigh of relief.

Harriman Mayor Chris Mason said Thursday that the purchase agreement with Covenant Health has been signed by all parties.

He hopes the closing will take place next week before a large bond payment is due May 1.

“(The) tentative closing date is Monday or Tuesday,” Mason said.

The issue came up at the Harriman City Council workshop Thursday. Mason answered questions by council members.

In a phone interview, Mason said that Covenant will be responsible for the bond payment.

While the purchase agreement has been signed, Mason said the lease agreement would not be signed until the closing of the purchase agreement.

City council voted earlier this year to go with the Covenant proposal and to allow Mason and an attorney to work on finalizing some smaller details in the contract.

Officials at the city-owned Roane Medical Center recommended making a deal with Covenant Health last year.

Roane Medical Center administrator Jim Gann attributed the declining revenue of the hospital to the disenrollment of TennCare recipients.