Jellico Regional Hospital sues Progressive Health, claims breach of contract contributed to struggles

KNOXVILLE, Tenn. (WVLT) - Jellico Regional Hospital filed a lawsuit Tuesday, suing Progressive Health and claiming the company pulled out of a deal that would have kept the hospital afloat.

Jellico Regional Hospital has been part of a long series of ups and downs. The hospital was first formed in 2020 when it received a lease from the City of Jellico, before shutting its doors and being required to make improvements to meet hospital requirements. That process was delayed because of supply chain issues stemming from the COVID-19 pandemic.

Since then, the hospital has opened and closed its doors several times for several reasons, before closing, for the latest time, in in March.

Now, the hospital is claiming that Progressive Health of Jellico and Progressive Health Group caused damages to the hospital and Zynergia, a staffing company it worked with. This, because the companies pulled out of a leasing contract with the hospital just days before it officially closed.

It marks the latest example showcasing the struggles of bringing quality healthcare to rural counties. Without the hospital, the region has little lab care, specialty care and has forced those in the area looking for options to make trips as far as Knoxville.

Previous Coverage: The Healthcare Crunch | East Tennessee communities fight to keep rural hospitals

The hospital is asking the courts to award it $4,000,000 in damages and enforce the two companies to comply with the contracts. Below is the full complaint.