Jellico Regional Hospital in Tennessee has filed a lawsuit against Progressive Health, alleging that the company backed out of a deal that was meant to save the struggling hospital. The hospital has faced numerous challenges since its formation in 2020, including temporary closures and delays in meeting hospital requirements due to supply chain issues during the COVID-19 pandemic.
Despite reopening and closing multiple times, Jellico Regional Hospital ultimately closed its doors for the latest time in March. The hospital claims that Progressive Health and Progressive Health Group caused damages by withdrawing from a leasing contract just days before the official closure, impacting both the hospital and Zynergia, a staffing company it was working with.
The lawsuit highlights the ongoing difficulties in providing quality healthcare to rural communities, resulting in limited lab care, specialty care, and increased travel for residents seeking medical services. With the hospital’s closure, individuals in the area now face longer journeys to places like Knoxville for medical treatment.
In its legal action, the hospital is seeking damages of $4,000,000 and requesting that the companies involved adhere to their contractual obligations. This case reflects the broader challenges faced by rural hospitals and the critical need for sustainable healthcare solutions in underserved regions.
