Catoosa County commissioners voted Tuesday night to pay Erlanger Health System $6.25 million to satisfy claims involving Erlanger's management of the former Hutcheson Medical Center in Fort Oglethorpe.
The funds will be taken from the county's fund balance (rainy day fund), officials said.
Catoosa County and Walker County had agreed to guarantee $10 million each of $20 million that Erlanger put into Hutcheson, which ultimately wound up in bankruptcy and was closed.
Terms of the bankruptcy settlement brought some credits that trimmed the amount owed by each county to $8.5 million.
Walker County sued Erlanger, but that counter-claim was dismissed by Judge Harold Murphy of Rome, Ga. He upheld the debt owed Erlanger by Walker County.
Under terms of the Catoosa County agreement, it would get a rebate if Erlanger settles with Walker County for less than $6.25 million.