Blount Memorial Hospital might soon join South Carolina’s largest healthcare organization, Prisma Health. This potential affiliation follows months of discussions aimed at strengthening Blount Memorial’s future.
If Prisma, a private non-profit, meets the conditions in a letter of intent approved by the hospital’s board on July 18, it would be Blount Memorial’s first health system partner in its long history. Out of eleven potential partners, Prisma emerged as the sole contender. The deal could be finalized by the end of November.
The letter of intent is not a binding agreement but shows Prisma’s commitment, including a $364 million investment in the hospital. Prisma would become the hospital’s sole member, but current staff contracts and leadership are expected to remain mostly unchanged.
Covenant, the University of Tennessee, and Prisma were the finalists, with Prisma chosen due to cultural alignment. The deal involves a long-term lease of the hospital land.
If finalized, the agreement will be a member substitution, similar to a stock sale in corporate finance. The Blount County Board of Commissioners must approve the letter of intent, with a meeting scheduled for later today to discuss the terms.
Interim hospital CEO Jonathan Smith acknowledged the county’s role, stating that no further details will be available until after the county’s meeting.
The hospital’s board approved the letter unanimously, and if the transaction proceeds, it will mark Prisma Health’s first expansion outside South Carolina, where it currently operates 18 hospitals.