Tennessee Regulators Allow Deadline Extension in Wellmont/Mountain States Merger

(NASHVILLE) The Tennessee Department of Health and state Attorney General’s Office have extended the deadline for closing the Mountain States Health Alliance and Wellmont Health System merger deal.

Instead of a Jan. 1 deadline, Mountain States and Wellmont executives now have until Jan. 31 to finalize the hospital system merger, which has to occur before the state will officially grant the merged company, Ballad Health, its Certificate of Public Advantage. 

The health systems cited two reasons in asking for the extension- one, to allow Virginia’s Technical Advisory Panel more time to measure the merger’s impact on public health in Southwest Virginia. 

The Johnson City Press says the other reason for the delay was Congress’ recently passed tax reform legislation, specifically how it would prohibit tax-exempt financing for certain nonprofit organizations, like hospitals.