Hutcheson Medical Center has filed a new complaint in Bankruptcy Court at Rome, Ga., asking a judge to temporarily halt the ongoing bitterly-fought lawsuit with Erlanger Health System, saying it is disrupting efforts by the financially-ailing HMC to consider offers from bidders and to reorganize.
The 14-page complaint says Hutcheson is "actively pursuing an asset sale process and is engaged in discussions with a number of bidders. In order to allow the sale process to run its course, the debtors need some time to focus on that process instead of litigating with Erlanger."
It says the debors "are actively involved in reorganization efforts, including a process by which they are seeking to sell substantial assets. The debtors have received bids from several bidders on some or all of their assets and are continuing to solicit bids.
Hutcheson officials said "there is a reasonable likelihood that the debtors will be able to sell substantial assets and successfully reorganize."
They said the costs of defending the Erlanger litigation "risk diverting essential estate resources at a time when cash flow is essential."
Erlanger fired back with a 26-page answer, asking the court to deny the motion and let the lawsuit continue. It notes that HMC six months ago had asked that the lawsuit be revived.
It notes that the U.S. Trustee for Region 21 has asked the court to dissolve Hutcheson's bankruptcy case, saying it has run up over $5 million in debts since the bankruptcy was filed and has not filed a plan of reorganization though it has been 10 months.
Erlanger said HMC was attempting to relitigate issues that Judge Harold Murphy had ruled in favor of Erlanger.
Erlanger also said that it has a lien on the hospital property relating to $20 million in funds it provided to HMC during a period of time when Erlanger was managing Hutcheson. It said potential Hutcheson bidders may not be aware of the lien.
Hutcheson attorneys said, "The Erlanger litigation has proven to be a massive and costly endeavor involving hundreds of thousands of documents and dozens of potential witnesses.
They said HMC officials have had to deal with issues involving the lawsuit rather than focusing their full attention on turning the finances of the Fort Oglethorpe hospital around.
Judge Paul W. Bonapfel is handling the bankruptcy portion of the case.
Hutcheson officials insisted that patients are still getting good care.
“The quality of patient care is driven by the medical staff at any hospital,” stated Sandra Siniard, Vice President of Patient Care and Chief Nursing Officer of Hutcheson Medical Center. “We have this process in place, which is supported by the Georgia Department of Community Health. We can confidently say the allegations set forth in the recent court filing by the U.S. Trustee regarding patient care concerns will be strongly defended. In addition, our laboratory is CAP (College of American Pathologists) certified, which is the gold standard in our industry.”
Richard Fromm, MD, FACS, Department Chair of Surgery at Hutcheson, said, .“I continue to perform both elective and emergent procedures at Hutcheson Medical Center. I have to have complete confidence in where I perform procedures and would never compromise the safety and needs of my patient. At Hutcheson, I am involved in the management of many highly complex patients in the ICU, ER, and in surgery, and I have always been satisfied with the expertise, competence, and compassion of the nurses and other physicians that I work with. Hutcheson continues to play a vital role in the healthcare delivery in the Region, and I have complete confidence in Hutcheson’s staff and the services they provide to my patients."
Timothy Ashburn, MD, Chief Medical Officer and Medical Director of ICU and Cardiopulmonary at Hutcheson, stated, “In the three years that I have practiced at Hutcheson, the level of patient care has exceeded my expectations. Hutcheson’s experienced staff, with years of dedicated service to Hutcheson, is second to none. As a pulmonologist/intensivist, I treat complicated, critically ill patients, and I have always had the supplies I have needed in a timely manner. In addition, as the chief medical officer, I review cases on a daily basis, and I have seen no change in Hutcheson’s patient quality numbers.”
Clark Colvard, MD, Department Chair of Medicine at Hutcheson,.said, “As a physician and board certified cardiologist who has practiced at Hutcheson Medical Center for 29 years, I have never had an issue with quality of care at Hutcheson. I am 100 percent confident in the staff at Hutcheson and in the care and safety of my patients.”