Blount Memorial Hospital Board of Directors and Blount County Board of Commissioners Approve Agreement for Hospital to Become Part of Prisma Health
Partnership Expected to Position Blount Memorial to Expand Services in Blount County
MARYVILLE, Tenn. – The Blount Memorial Hospital, Incorporated Board of Directors and the Blount County Board of Commissioners have each approved entering into a non-binding letter of intent with Prisma Health that provides for Blount Memorial Hospital to become part of Prisma Health later this year. The strategic decision was approved following unanimous votes from both boards today.
The organizations now enter a period of exclusive negotiation, due diligence and transition planning. Following execution of definitive agreements, receipt of regulatory approvals and satisfaction of customary closing conditions, the transaction is anticipated to be complete in the fourth quarter of 2024.
“Prisma Health has a remarkable track record of transforming care and making a meaningful difference in the communities they serve,” said Blount Memorial Hospital Interim Chief Executive Officer Jonathan Smith. “From our earliest meetings to their final proposal, Prisma has demonstrated a keen interest in helping us build on our recent success and reach our full potential as a regional referral center. We are confident their support will elevate our services, benefit our physicians and staff, and ensure high quality care for our patients long into the future.”
Headquartered in Greenville, South Carolina, Prisma Health is a private nonprofit health company and the largest health care organization in that state. Their network of care delivery locations includes 18 acute and specialty hospitals and more than 300 practice sites. Blount Memorial will become the organization’s first hospital in Tennessee.
In January of this year, Blount Memorial and Blount County jointly retained leading industry advisors specializing in hospital mergers to help guide a structured process to identify potential partners for the hospital. Representatives from both entities, including physicians from the hospital’s medical staff, worked closely with the advisors in a comprehensive, multi-month exploration process. The evaluation involved in person meetings at Blount Memorial and at potential partners’ corporate offices as well as visits to their local hospitals and a thorough analysis of written proposals. Prisma Health emerged as the desired partner.
“Our goal from the beginning was to provide a successful hospital that our Blount County citizens have pride in. Prisma Health’s impact in their home state of South Carolina has garnered national attention and the respect of the health care industry,” said Blount County Mayor Ed Mitchell. “They have an impressive history of focusing on and improving community health to ensure all residents they serve can live their healthiest lives. We are honored to welcome Prisma to Tennessee and to Blount County.”
Though terms of definitive agreements will be completed in the coming months, Prisma Health has agreed to invest a minimum of $275 million in capital improvements in the hospital’s service area over the next 10 years, including the implementation of a new electronic health records system (EPIC) and other patient-centered technologies. Prisma has also committed to expanding services and attracting high-quality physicians and clinical experts; maintaining all physician contracts and employing all employees in good standing at the time of close for at least one year, and continuing all essential services for at least 10 years.
“The people of Blount County have every right to be proud of their community hospital, and we are certainly very proud to be selected as the hospital’s partner for the future,” said Prisma Health President and CEO Mark S. O’Halla. “We look forward to working with the physicians, nurses, administrators and employees at the hospital and to being part of the Blount County and East Tennessee community for many years to come.”
Though governance of the hospital will evolve as part of the transaction, local leaders will continue to play significant roles in the future of both the hospital and the Blount Memorial Foundation.
“In Prisma Health we have found a partner with a vision for the future and a commitment to delivering world class health care and exceptional patient experience right here in Blount County,” said Chris Flynn, president, Blount Memorial Hospital Board of Directors. “I commend the hospital leaders, community members, physician leaders and everyone involved in the process to date on their diligence, open mindedness and dedication to doing what is best for the hospital and the community. Their diligence, and this decision, helps ensure our community receives the best possible health care, close to home, for generations to come.”
Learn more about Blount Memorial Hospital’s plans for the future on the hospital’s website at
www.blountmemorial.org/whatsnext.
About Blount Memorial Hospital
Blount Memorial Hospital is a 304-bed acute care hospital in Maryville, Tennessee, which is 20 minutes outside of the Knoxville, Tennessee, area. It has more than 2,700 employees and 200 physicians working in clinical and nonclinical positions in 20 locations in Blount and Monroe counties. Key services include cancer, orthopedic, surgical and cardiac care. The hospital was founded in 1947 through the efforts of local physicians, the county court, interested citizens and employees of the Aluminum Company of America. It is named in honor of Blount Countians who have died in the line of duty, those missing in action, and those who have served and continue to serve our country.
About Prisma Health
Prisma Health is a private nonprofit health company and the largest health care organization in South Carolina. The company has 29,309 team members, 18 acute and specialty hospitals, 2,827 licensed beds, 305 practice sites, and more than 5,400 employed and independent clinicians across its clinically integrated inVio Health Network. Along with this innovative network, Prisma Health serves almost 1.5 million unique patients annually in its 21-county market area that covers 50% of South Carolina. Connect with Prisma Health on Facebook, Instagram, LinkedIn and Twitter/X.
