Wellmont Health Systems, Kingsport, Tenn., said it has agreed to sell 25-bed Jenkins (Ky.) Community Hospital to Appalachian Regional Healthcare, Lexington, Ky. Terms were not disclosed. The deal is expected to close by April 30.
The hospital will cease inpatient services, but primary-care physician practices will be on the campus and in Elkhorn City, Ky., said Angela Lang, a spokeswoman for Appalachian Regional. Elkhorn City is about 25 miles from Jenkins. Acute-care services are available at the nine-hospital systems 82-bed Whitesburg (Ky.) Appalachian Regional Hospital, which is just 12 miles from Jenkins Community, Lang said.
After Wellmont acquired the hospital in 2007, it recruited new physicians, bought new equipment and renovated parts of the hospital, but the average daily census of the hospital was just three patients, Wellmont said. For the year ended June 30, 2008, Jenkins Community had an operating loss of $1.8 million and a net loss of $2.8 million on $7.2 million in net revenue, according to the American Hospital Directory.