Hutcheson Medical Center will close Friday after plans to save it through an outside buyer hit snags on Thursday afternoon.
However, attorneys said they were still trying to deal with objections from main creditors Erlanger Health System and Regions Bank.
Bankruptcy Judge Paul Bonapfel in Atlanta set a new hearing for Tuesday afternoon. If the deal is not ready by then for the purchase by Prime Healthcare, another hearing could be held Friday, Dec. 11.
Attorneys said Hutcheson is able to keep its license for 10 days after closing.
The deal calls for Prime to pay $4.7 million for the hospital and its equipment, plus 45 acres of land.
It does not include the nursing home that will be sold to another buyer, Maybrook.
Hutcheson has served Walker, Catoosa, and Dade counties for over 60 years. An attorney for Erlanger said it has been working toward a settlement, including spending an entire day with the U.S. Trustee in Rome, Ga.
Erlanger has circulated its settlement terms. Erlanger put $20 million into the Fort Oglethorpe hospital during a period it managed it. Don Oliver, county attorney for Walker County, indicated it is willing to accept Erlanger's terms, saying they were similar to an offer Walker County made earlier.
Skip Patty, county attorney for Catoosa County, said the five-member Catoosa County board will meet Monday night to consider the settlement.
Another issue involves claims by Regions Bank, which was the main lender for the hospital.
An attorney for Prime said the firm is adept at taking distressed hospitals and turning them around.
Prime would provide ongoing financing and cover any losses. It would not be involved in current accounts.
The Hospital Authority for the three counties passed this resolution at a meeting at noon on Thursday at the hospital:
WHEREAS, an offer has been received from Prime Healthcare Foundation, Inc. to purchase Hutcheson Medical Center (“the Hospital”) located on the main campus in Fort Oglethorpe, Georgia;
WHEREAS, after due consideration we consider it to be in the best interest of the Hospital Authority, the community and the counties and based upon the support of Dade County and the overwhelming support of the Catoosa County community and the Walker County government we have determined it is thus in the best interest of the Hospital Authority to support the sale of the “Hospital” to Prime Healthcare Foundation, Inc.
THEREFORE BE IT RESOLVED that the Board of Trustees of The Hospital Authority of Walker, Dade and Catoosa Counties unanimously supports the sale of Hutcheson Medical Center to Prime Healthcare Foundation, Inc.
DATE ADOPTED:________________________________
________________________________________________
Steve Cooper, Vice Chairman of The Hospital Authority of
Walker, Dade and Catoosa Counties