Erlanger Agrees For Walker County To Pay Debt In Installments

  • Thursday, January 4, 2018

Erlanger Health Systems has agreed to allow Walker County Georgia to pay its huge debt to the hospital in installments. 

An agreement was reached in which Walker County will pay off the $8.7 million that is owed at $650,000 for 12 quarters, starting in January 2018.  Walker County will make a 13th and final payment of $900,000 to Erlanger by the end of 2020, according to the terms of the full settlement.

As part of the full settlement, Erlanger will waive interest and attorney fees awarded in its federal judgment against Walker County.

Walker County recently set a special tax in place that Commissioner Shannon Whitfield said would bring in $2.5 million per year toward the Erlanger debt. 

The debt relates to Erlanger's operation of Hutcheson Medical Center, which later went bankrupt.  Walker County guaranteed $10 million of $20 million in money advanced to Erlanger to help prop up the hospital. 

"I am deeply appreciative for the empathy shown by Erlanger toward the people of Walker County," said Commissioner Whitfield.  "Our citizens didn't get the county into the financial mess we are working to correct, but they are being asked to help dig us out.  By allowing Walker County to pay off this debt over three years, we understand that Erlanger recognizes real people are making real sacrifices."

Erlanger President and CEO Kevin M. Spiegel, FACHE, said, "With Walker County's commitment to repay the full amount due today, Erlanger is pleased to conclude these negotiations and waive both the interest and attorney fees.  We remain committed to caring for patients from Northwest Georgia, and will continue to look for opportunities to partner with Commissioner Whitfield and the good citizens of Walker County."

Jack Studer, chairman of the Hamilton County Chattanooga Board of Trustees, also expressed his gratitude for the settlement agreement between Erlanger and Walker County.  "I am appreciative of the leadership from both Commissioner Whitfield and CEO Kevin Spiegel for putting our two great organizations on more solid footing for the future. Erlanger is honored to serve North Georgia, and looks forward to continuing to provide world-class care to everyone in Walker County." 

Commissioner Whitfield said, "This agreement will save the county nearly $580,000, and gives our taxpayers peace of mind. We have reached a full settlement that allows us to make payments and brings closure to an issue that has concerned our community."

Click here to read the settlement.

 

Breaking News
Latest Hamilton County Arrest Report
  • 3/28/2024

Here is the latest Hamilton County arrest report: ADERHOLT, FELICIA DAWN 1110 ST CLAIR ST DUNLAP, 37327 Age at Arrest: 37 years old Arresting Agency: HC Sheriff Booked for Previous ... more

Signal Mountain Must Determine How To Use Remainder Of ARPA Funds
  • 3/27/2024

The town of Signal Mountain has $358,637 remaining from the American Rescue Plan Act (ARPA) funds it received and there must be a plan in place by the end of the year for how the money will be ... more

2 Men Charged In Dalton For January Drive-By Shooting
  • 3/27/2024

The Dalton Police Department has charged two men for their roles in a Jan. 28th drive-by shooting near downtown Dalton. Joshua Lee Edwards, 36, of Dalton was charged with two counts of aggravated ... more