Satellite Med, a primary care practice in the Cookeville, Tenn., area, permanently closed Thursday after 20 years of operation, with owner James Cates, MD, citing a decade of declining reimbursements and insurance company interference in clinical decision-making as the primary drivers.
“Healthcare in America has been in a downward spiral for the last 10 years,” Dr. Cates said in a Facebook post announcing the closure. “Insurance companies in particular have made it almost impossible to practice medicine as an independent practice.”
Dr. Cates said insurers have consistently reduced reimbursements to providers while raising premiums on patients and inserting themselves into medical decision-making.
“This has forced providers and practices to try to bring healing to our patients with one hand tied behind our back,” the post said.
According to UC Now, Satellite Med was acquired by Interstate Health, an urgent and primary care MSO, in 2024 as part of an effort to expand healthcare services in the Cookeville area, with plans at the time to add Medicare and Medicaid patients, preserve existing staff and maintain the practice’s community presence through a co-branded identity. The closure comes less than two years after that acquisition.
The practice is currently processing thousands of requests for medical record transfers. Patients will receive personalized instructions in the coming days about how to transfer records to other providers or bring flash drives to receive records digitally.
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