Hutcheson Settlement Allows Erlanger To Go After Millions Pledged By Walker And Catoosa Counties

Monday, December 14, 2015

Erlanger Health System officials said a settlement of issues involving Hutcheson Medical Center will pave the way for Erlanger to go after millions of dollars pledged by Catoosa and Walker counties.

"This allows us to go get back our $20 million," Erlanger Chief Legal Officer Jeff Woodard said.

Erlanger sank $20 million into the struggling Fort Oglethorpe hospital during a time it managed Hutcheson. The $20 million was backed by the two counties at $10 million each. Dade County, also a member of the three-county Hospital Authority group, opted not to pledge any security.

Hutcheson then failed, and Erlanger is now ready to come calling against the counties.

Attorney Woodard noted that money Erlanger is getting from the sale of some of the Hutcheson assets will count against the counties' debt.

Erlanger is set to get $1.2 million from the proceeds of the sale of the hospital and $1,390,000 from the sale of the nursing home and child care center. Erlanger is also to get $225,000 if the doctors office building is sold, and there are some other pieces, including some vacant land and some offices.

That leaves the obligation of the counties still at above $17 million.

Erlanger had claimed as much as $32 million, counting fees and interest. However, in the settlement Erlanger waived any amounts above the $20 million.

Attorney Woodard noted that Hutcheson wound up some $80 million in debt, and will have some $10 million in assets to divide up for the estate after the sale of the hospital and the nursing home.

Among those in the scramble for the dollars will be a host of attorneys who have worked on the case for a number of months. Most of those attorneys are from Atlanta, where the bulk of the bankruptcy case was heard.

 


Signal Mountain Mayor Says Town Has Problems Keeping Full Staffs

Latest Bradley County Arrest Report

Get Emailed Headlines From Chattanoogan.com; Like Us On Facebook, Twitter For Instant News


Signal Mountain Mayor Dan Landrum’s annual “State of the Town” address was a mostly-positive recap of what the community had accomplished in 2019, while also highlighting its most notable problem. ... (click for more)

Click here for the latest Bradley County arrest report. (click for more)

We send out headlines each week day of the latest Chattanooga news. Our news headlines have links that take you to the stories with a click. We also send out special emails if there ... (click for more)


Breaking News

Signal Mountain Mayor Says Town Has Problems Keeping Full Staffs

Signal Mountain Mayor Dan Landrum’s annual “State of the Town” address was a mostly-positive recap of what the community had accomplished in 2019, while also highlighting its most notable problem. Throughout the address, Mayor Landrum praised the work of the various Signal Mountain departments. But in the end, a unifying theme became apparent for the state of Signal Mountain’s government. ... (click for more)

Latest Bradley County Arrest Report

Click here for the latest Bradley County arrest report. (click for more)

Opinion

What Downtown Needs

Dear Jim and Kim, Thank you for launching River City's effort to look at what can be done to re-energize and protect the Riverfront area. I will not be able to make it to meetings this month so I decided to jot down my thoughts. I would appreciate it if you would include a copy of this email with the feedback "record" for Wednesday's community meeting. ... (click for more)

Roy Exum: Pythons Lose In Bowl

With the Super Bowl in Miami a week away, the results of the Python Bowl captivated South Florida on Saturday. That’s right; it was announced 80 Burmese pythons had been dragged out of the Everglades by a band of cash-hungry snake hunters and Mike Kimmel won an off-road ATV for bagging the most – eight. His buddy Tom Rahill won $2,000 for bringing in the longest – a 12 foot, seven ... (click for more)

Sports

CFC Anounces NISA Schedule; Home Opener Is March 14

Soccer in the Scenic City is fast approaching and the Chattanooga Football Club announces its NISA schedule for the Spring season. Fans will enjoy seven home games in “Fort” Finley Stadium starting March 14th against Michigan Stars. “It’s going to be an exciting Spring for the boys in blue. We’ve worked hard with NISA to create a schedule that gives fans and supporters a maximum ... (click for more)

Pat Benson: I'm Going To Miss You Kobe

The tears just won’t stop flowing. My dad called me in a panic yesterday afternoon to break the news before I saw it online. He knew that Kobe was my favorite athlete of all time. Scratch that, one of my favorite people of all time. Kobe was on my Mt. Rushmore of people I never met but still adored. Right above Barack Obama and Kanye West. If you know me then you know how much ... (click for more)