COMMON CORE TOWN HALL MEETINGKIDS LEFT IN HOT CARDOG VIGIL GOES VIRALFAMILY SUES ERLANGER
WTVC NewsChannel 9 :: News - Top Stories - Erlanger Files Notice to Foreclose on Hutcheson Medical Center Property
Updated:
Thursday, July 3 2014, 07:50 PM EDT
Erlanger Files Notice to Foreclose on Hutcheson Medical Center Property
Officials with the Erlanger Health System have initiated formal foreclosure proceedings against Hutcheson Medical Center as part of the effort to get money owed to Erlanger according to a management agreement signed three years ago between the two healthcare providers.
 
Hutcheson board members received notification of Erlanger's intentions to foreclose on Hutcheson property Thursday, along with a copy of public Notice of Sale submitted to Catoosa and Walker County legal publications.

The sale under the security deed is scheduled for August 4th on the steps of the Catoosa County Courthouse in Ringgold.
 
Under the terms of the management agreement, signed April 25, 2011, Erlanger agreed to provide management services to Hutcheson and issued a line of credit for $20 million in an effort to save the failing facility.
 
Erlanger's $20 million line of credit was secured by the real property and improvements on Hutcheson's main campus in Fort Oglethorpe and further guaranteed by Walker and Catoosa Counties, up to $10 million per county. At the time Erlanger signed this agreement, Hutcheson was losing $1.5 million a month.
 
In May 2013 Erlanger loaned Hutcheson an additional $550,000 to further help the hospital meet payroll obligations.  In November of 2013, Hutcheson terminated the management agreement with Erlanger.  Since that time Erlanger says it has tried on numerous occasions to come to a mutual agreement as to an effective termination and timely repayment of all moneys owed by Hutcheson to Erlanger.

Erlanger officials say they're willing to continue to have further dialogue with Hutcheson to resolve this issue in an amicable manner.  
 
"Erlanger dedicated well over $20 million and other invaluable resources to Hutcheson to ensure it would continue to meet the healthcare needs of the northwest Georgia community," said Erlanger President and CEO, Kevin M. Spiegel, FACHE.  "Without exception, Erlanger met its obligations to Hutcheson under the management agreement."
 
Despite Hutcheson's repeated threats to terminate the agreement, Erlanger continued to work with Hutcheson in exploring the feasibility of continuing its relationship through a long-term lease agreement, including a submission of a response to Hutcheson's request for proposals. "We were the only qualified bid responder to Hutcheson's RFP for a long-term lease agreement," noted Erlanger's Chief Financial Officer Britt Tabor.
 
Erlanger's Board Chairman Donnie Hutcherson said, "We have acted in good faith with regards to Hutcheson, but the time has come to expect repayment."  Hutcherson also noted, "As a responsible health care provider, an organization that fulfills its mission and conducts business in an orderly fashion, Erlanger must enforce its rights to full recovery of this loan."
 
Foreclosure does not necessarily mean that Hutcheson will cease operations as the community's hospital.  On the contrary, the purchaser at the foreclosure sale will make the decision as to whether the facility remains or does not remain as Hutcheson Medical Center.  Regardless, Erlanger remains committed to meeting its longstanding and continued support of the health care needs of northwest Georgia.
 
"Erlanger is fully entitled to recover our $20.5 million in loans to Hutcheson," Spiegel said.  "Our employees and their families, our medical staff, the community we serve and our bondholders would expect nothing less."

Hutcheson Medical Center sent a response to NewsChannel9, saying “In negotiating a settlement over the management contract, Hutcheson made an offer that would have allowed for full repayment of the $20 million loan to Erlanger. It is shameful that Erlanger, which just posted a huge profit this week, would refuse that offer and instead seek to close a small community hospital,” said Farrell Hayes, President and CEO of Hutcheson Medical Center.

For a complete list of Hutcheson’s counterclaims against Erlanger, visit their website. Erlanger Files Notice to Foreclose on Hutcheson Medical Center Property

Advertise with us!

Related Stories

  • TN/GA Regional News
  • National News
  • International News
  • WTVC :: Community - The Good Life

    The Good Life

    Celebrating the events, adventures and activities that represent "The Good Life" in the NewsChannel 9 viewing area.
  • WTVC :: Community - Sideroads

    Sideroads

    Take a ride with Brian Smith to explore the unique people and places to be found along the Sideroads of the NewsChannel 9 viewing area.
  • WTVC :: Community - Road Trippin

    Road Trippin

    Come Road Trippin' with us and see all the great sites in your area!
  • WTVC :: Community - Closings and Delays

    Closings and Delays

    These are the latest School and Business Closings reported to NewsChannel 9. If you see errors or need to add a school or business, call 423-757-7320.
  • WTVC :: Community - Educator of the Year

    Educator of the Year

    Vote now on your favorite candidate teacher for the Educator of the Year!
  • WTVC :: Community - Wednesday's Child

    Wednesday's Child



  • WTVC :: Community - Deaf & Hard of Hearing

    Deaf & Hard of Hearing

    Information provided to NewsChannel 9 by members of the Deaf and Hard of Hearing Community.
  • WTVC :: Community - Community Calendar

    Community Calendar



  • WTVC :: Community - Photo Galleries

    Photo Galleries



  • WTVC :: Community - Sponsored Events

    Sponsored Events

    Check Back Often for NewsChannel9 Sponsored Events!

NewsChannel9 Top Stories

Our Thursday Facebook Friend of the Day

GMC Mid-Morning Update for Thursday

Execution in Arizona Draws Controversy

Should You Avoid the Airline?

DeKalb County Woman Arrested on Drug Charges

Algeria Loses Contact with Plane

Family of Deaf Couple Sues Erlanger Hospital

Two Police Captains Charged In Money Laundering Case

4 Kids Left Unattended in Hot Car, Mother Charged with Neglect

Chattanooga Man Facing Rape and Kidnapping Charges

City Council Announces Public Forum on Noise Ordinance

EPB Reassures Customers Its Billing Is Accurate

Pros & Cons of Common Core

The Price of Freedom: World War II Veteran George Palmer

Preseason Praise for Mocs at SoCon Media Event in SC

Chattanooga Police Chief Picks Top Leadership

Unwelcome 'Art' at Dalton's Creative Arts Guild

Retired Vet Walking from "Sea to Shining Sea"

"Made in Tennessee" Ad Campaign Made in Missouri

FAA Extends Travel Ban to Israel for Another 24 Hours

Cross Burned Outside Clarksville Church

Dog Vigil Goes Viral

Demolition Graffiti Party

Our Wednesday Facebook Friend of the Day

Senior Center at East Gate

GMC Mid-Morning Update for Wednesday

Bradley Co Accident Shuts Down Roadway

Georgia Primary Election Runoff Results

Chattanooga's Noise Ordinance: Turn The Volume Up?

Spy Camera Found in Downtown Chattanooga Bathroom

Churches Vandalized, What Tipped Elders Off

Inspector Addresses Parking Garage Safety Concerns

The Political Landscape of Common Core

EPB Releases Findings of Street Light Audit

Chrysler Issues Jeep Recall

Spy Camera Found in Chattanooga Business Bathroom

Neighbors Throw Rocks on Man's Window to Tell Him Apartment is on Fire

Cleveland Gas Station Robbed

Car Plows into Cleveland Business

Child Removed from Home with Meth Lab

Local Group Aims to Help Families with Kids Heading to School

Generous Donation Helps Local Farmers Market

Report: Tennessee Children's Well-Being Improving

Citing Security Concerns, U.S. Airline Companies Scrap All Israel Flights

Catoosa Police Publish Home Invasion Suspect Sketch

Federal Appeals Court Deals Health Care Law Major Blow

GA Voters Head to the Polls in Primary Runoff

Mysterious White Flags Replace American Flags on Brooklyn Bridge

Our Tuesday Facebook Friend of the Day

Prince George Turns 1!

GMC Mid-Morning Update for Tuesday

Third Congressional District Candidates Speak At UTC Forum

Man Sought for Stealing from Children's Miracle Network

Calvin Digs Deeper Into Common Core

Bradley Co. Detectives Need Help Finding Church Thieves

Christan Taylor - A Beacon of Friendship

Busy Intersection Under Investigation After Accident

UPDATE: Biker Community Reacts to Fatal Motorcycle Crash

Chattanooga Coca-Cola Community Expands

Obama Gives Protection to Gay, Transgender Workers

Is Russia Concealing Evidence in Ukraine Plane Shootdown?

Pedestrian Struck and Killed in Chattanooga

Sideroads: Mayfield Farm

Man Adopts a Fine Feathered Friend

Our Monday Facebook Friend of the Day

Middle East Crisis

GMC Mid-Morning Update for Monday

Conserving Water in Chattanooga

Mothers Demanding Stop To Gang-Related Violence

Legendary Actor James Garner Dies

McMinn Sheriff Warns of Scam

Disabled Sports Despite Rain

Chattanooga Woman Using Birthday To Promote Kindness

Restaurants Take Measures To Avoid Over-Serving Customers

Cleveland Crash Survivor Shares His Story

Lawyer Weighs in on Police Order to Destroy Video

McMinn County Murder Suspects in Court

House Fire Training Ends For New Recruits

Obama Protestors Hang Signs at Hamilton Place Overpass

LaFayette Culinary Center Makes Quick Work of Lunch

David's Picks for the Weekend

Kickball Craze Hits Chattanooga

TN Family Invents "Handlebar Helmet"

What We Know, And Don't Know, One Day after Crash of Malaysian Plane

Fire Department Trainees Gather for Customary 'Fiery Photo'

Early Voting Underway in Tennessee, Ending in Georgia

President's Special Address on Plane Shoot-down and Gaza Conflict

FedEx Intends to Fight Drug Shipment Allegations

Campaign Finance Complaint Filed Against Weston Wamp

'Shocking' Jail Problems in Grundy County

Growing Wildfire Empties Washington Town

M17 Shootdown - Calling for an International Investigation

Our Friday Facebook Friend of the Day

Amazing Precision - They Did Try This at Home

GMC Mid-Morning Update for Friday

Snakes Galore - No Rule Against 200 Serpents in House

Rookie Firefighters Staring Down the Beast

Memorial Services Honor The Life Of Cleveland Judge Bill Moss

Settlement Reached for Past Due Liquor Taxes in Hamilton County

Israel & Gaza "Cheat Sheet:" How the Conflict Got to This Point

Advertise with us!

Newsmax Headlines

Sponsored content

Business News

Asian stocks subdued before earnings reports

UNDATED (AP) -- Asian shares were subdued today despite an improvement in China's manufacturing as a wait-and-see mood prevailed ahead of earnings reports from some of the region's top companies.

Consumer Info

   WEST PALM BEACH, FL -- (Marketwired) -- 03/21/14 --
 Companies that pride themselves on being eco-friendly may have conflicted
 ideas between marketing with ad specialties and maintaining their green
 reputation. ...

Entertainment News

"DOWNTON ABBEY" - ALLEN LEECH

BEVERLY HILLS, Calif. (AP) -- Allen Leech wants fans to be excited about "Downton Abbey" without pestering him for details that ruin everything.

Get This

TURNPIKE PIZZA-LAWSUIT

TRENTON, N.J. (AP) -- The New Jersey Turnpike Authority wants to take a bite out of a Florida pizza shop.

Science/Tech News

IN THE NEWS: PASSPORT COMPUTER DATABASE CRASHES

WASHINGTON (AP) -- Those waiting for passports may have a problem on their hands -- because of a problem the federal government is having with one of its computers.


 

Tonight on WTVC NewsChannel 9

7:00 Wheel of Fortune

7:30 Jeopardy

8:00 Black Box

9:00 Rookie Blue

10:00 NY Med

11:00 NewsChannel 9

11:35 Jimmy Kimmel Live

Complete Schedule »


Road Trippin
No Text Zone
Pay It Forward
Storm Track 9 Radar
Storm Track 9 Weather App