Rennova Health explains plans to spend more than $120k sent to closed hospital

Rennova Health, the owner of closed Jamestown Regional Medical Center explained how it plans to use more than $120,000 in federal aid money awarded as part of the CARES Act.

"We can confirm that Jamestown TN Medical Center, Inc. has received assistance from the Department of Health and Human Services Provider Relief Fund as indicated and publicly disclosed," Rennova CEO Seamus Lagan stated in a letter sent to WVLT News.

While the hospital remains closed, there are ongoing plans to reopen the hospital, Lagan continued, adding there are employees on staff as part of that re-open plan which could first open the emergency room.

"We are unsure on the metrics used to calculate the amount received but we believe and endeavor to ensure the money has been used in accordance with the guidelines and terms of such relief," Lagan stated.

On Wednesday, Senator Marsha Blackburn sent a letter to the U.S. Department of Health and Human Services demanding answers about why the hospital had received funding despite being closed.

In the letter, Sen. Blackburn also accused Rennova Health's Tennessee facilities of owing at least $2.3 million in unpaid federal taxes.

Lagan said all 2020 taxes throughout the Rennova group are paid. He added that there are ongoing discussions about repayment of any older outstanding taxes facilitated by Rennova.

Rennova owns Jellico Medical Center and Big South Fork Medical Center. Employees at both facilities have reported late pay in the past. The Tennessee Department of Labor and Workforce Development told WVLT News it had received ten wage complaints against Rennova back in February. However state officials said there is no ongoing investigation as of May 21.

"We are not aware of any money owed to any nurse or employee that worked at any of our facilities and our payroll department is confident they have not made any errors in this matter, nor have they had any errors reported to them from anyone," Lagan stated.

The full response from Rennova Health is available to read through the link below.