Rural Hospital Closures Harm Local Real Estate

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Social Determinants Of Health News

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In March 2021, this town of about 2000 residents in the hills of east Tennessee lost its hospital, a 54-bed acute care facility.

JELLICO, Tenn. — In March 2021, this town of about 2,000 residents in the hills of east Tennessee lost its hospital, a 54-bed acute care facility. Campbell County, where Jellico is located, ranksand has a poverty rate almost double the national average, so losing its health care cornerstone sent ripple effects through the region.

In Jellico, the town owns the building that housed the medical center, and Mayor Sandy Terry said it is in decent condition. But the last operator, Indiana-based Boa Vida Healthcare, holds the license to operate a medical facility there and has yet to announce its plans for the building, leaving Jellico in limbo. Terry said local officials are talking with health care providers that have expressed interest in reopening the hospital. That's their preferred option.

Rennova still owed Fentress County $207,000 in taxes, Johnson said, and in April the property was put up for auction. A local business owner purchased it for $220,000. But Rennova was granted a year to reacquire the building for what it owed in back taxes, plus interest, and did so within a few days.

"We have a building, an asset, that's probably worth $15 million," Turner said."It's a four-year university right here in the heart of Fayette County."

 

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