Erlanger Says Hutcheson Debt To It Now At $21.7 Million

Friday, February 28, 2014

Erlanger Health System, in its second federal lawsuit involving Hutcheson Hospital in a month, says the Fort Oglethorpe hospital now owes it $20 million from a line of credit, plus interest of $1.7 million.

The lawsuit filed at Rome, Ga., says Hutcheson has not made a single payment on the debt.

It says interest continues to accrue as well as late charges.

The suit is filed against The Hospital Authority of Walker, Dade and Catoosa counties and Hutcheson Medical Center.

The 14-page lawsuit notes that in April 2011 Erlanger entered into a management agreement with Hutcheson at a time the hospital had suffered significant losses for years and "was in dire financial condition."

It says it was agreed that Erlanger would deposit money into the Hutcheson operating account and charge against a $20 million line of credit. The entire $20 million was handed to Hutcheson.

The suit says Hutcheson officials signed a note promising to pay Erlanger the full amount of the loan on the maturity date - which fell last September when the agreement was ended.

It says in July 2013, Erlanger "obtained significant financial results for Hutcheson, including a July 2013 profit that more than doubled what had been budgeted and which helped achieve its first positive cash flow in more than seven years.

"Yet, despite Erlanger's steady improvements to Hutcheson's bottom line, by letter dated Aug. 20, 2013, Hutcheson and the Hospital Authority purported to terminate the management agreement, effective Sept. 19, 2013."


Deputy Beaten After Vehicle Crashes In His Yard Sues Officers

A man who was mistakenly beaten by officers who had been pursuing a pickup truck that crashed into his home has Hamilton County and the officers for $700,000. Aaron Lucas Shelton and his wife, Heather Nicole Shelton, filed the suit in Circuit Court. Aaron Shelton is himself a deputy sheriff. It names Curtis Brian Killingsworth and unknown officers who allegedly took part in ... (click for more)

Meigs County Judge To Hear Attorney Spanking Case

A Meigs County judge has been assigned to hear a case in which a Lookout Mountain attorney is charged with spanking his 11-year-old son 100 hits. Judges in Hamilton County General Sessions Court recused themselves after Morgan Adams was charged with aggravated child abuse last Friday. He is due in court on April 24. According to the complaint, his son received spanks based ... (click for more)

We Ought To Pay Our Own Way

The government is too big. It has never been bigger - by any measure. It spends more money than any other single actor in our society. From Blue Rhinos to providing telecommunications services, our government knows no bounds. We’ve gone from a free enterprise system to a public enterprise system.  I'm not an artist. I'm not terribly tech savvy. The part of government that ... (click for more)

Roy Exum: Our 92-Year-Old Victim

It is with great pride, and far greater relief, that I can report a “caretaker” is far different than a “boyfriend.” A story out of Memphis earlier this week morphed into a virtual fireball that had such power it appeared on the front page on a London newspaper and other news outlets all around the world when it was reported by the Associated Press a 28-year-old man had assaulted ... (click for more)

Baylor Girls Lose In State Basketball Semifinals, 69-61

NASHVILLE -- The third time wasn't the charm for the Baylor Lady Red Raiders. Facing the Brentwood Academy Lady Eagles in the semifinals of the D-II Class AA girls state basketball tournament at Lipscomb University, Baylor came up short for the third time this season against the Lady Eagles by a 69-61 final score. It was a see-saw affair with seven ties and 13 lead changes, ... (click for more)

UTC Men Edge VMI in Double Overtime, 86-82

The Chattanooga Mocs picked up a crucial road win in thrilling fashion, 86-82 in double overtime, at VMI. Chattanooga improves to 21-9, 14-3 in the Southern Conference, while the hosts fall to 11-17, 7-10 in league play. “It wasn’t pretty by any stretch of the imagination,” coach Will Wade said. “Good teams find a way to win, and we found a way to win. These were two highly motivated ... (click for more)