The board of directors for Hutcheson Medical Center voted Wednesday night to file for Chapter 11 reorganization in the Courts’ Northern District of Georgia Division. Hutcheson officials stated that filing for reorganization will allow the hospital to restructure its debt for long-term viability and "may help protect the hospital from Erlanger’s recent efforts to foreclose on the hospital’s property."
“The primary reasons we are filing for reorganization is to implement a reorganization plan that allows the hospital to continue its primary mission of serving the healthcare needs of North Georgia residents,” stated Farrell Hayes, president and CEO of Hutcheson.
“We heard first hand from local residents at our three public hearings that closing the hospital would be devastating to the public interest of North Georgia citizens. We also hope that our filing for reorganization will stop the Erlanger foreclosure, give us a fresh start, and allow us to continue taking care of the 160,000 residents in Walker, Dade and Catoosa.”
Mr. Hayes said he is confident that the reorganization process will not negatively impact the quality of care patients receive at Hutcheson. “From a patient’s perspective, nothing will change with the reorganization filing. The physicians and staff our community knows and trusts will be providing the same level of quality care we’ve always delivered. Actually, patient care should be better than ever, as we can concentrate on doing our job instead of constantly fighting with Erlanger,” he said.
Corky Jewell, chairman of the board for the hospital, stated that filing also allows the new hospital board and administration to restructure debt inherited from the old board and compounded by the mismanagement that is the subject of the hospital’s current counterclaim in the lawsuit initiated by Erlanger. He said, “This will allow Hutcheson to reorganize for the future. We’ve made tremendous strides this past year and the clinical side of our hospital operations is solid. This is a positive step for Hutcheson that will allow us to overcome debt and to continue the Hutcheson mission of providing high quality, affordable healthcare for the residents of Walker, Dade, and Catoosa for years to come.”
Hutcheson officials said, "In recent years many organizations, such as GM and Chrysler and Georgia-based companies including Delta, have been able to use the Chapter 11 reorganization process successfully as a vehicle to restructure their financial obligations while preserving jobs and continuing to serve the public."
“We fully expect Hutcheson to join that list of companies who have emerged from Chapter 11 reorganization even stronger than before,” said Mr. Jewell.