Hutcheson Medical Center in Fort Oglethorpe, Ga.Hutcheson Medical Center's board of directors voted Wednesday night to file for Chapter 11 bankruptcy reorganization.
Hutcheson has been unable to repay $20 million it borrowed from Erlanger Health System and is facing a threat of foreclosure. In January, Erlanger filed a civil lawsuit against Hutcheson, who was supposed to pay back the $20.5 million loan by Dec. 1 of last year.
In a news release from Waterhouse Public Relations, Hutcheson officials said that the filing will "allow the hospital to restructure its debt for long-term viability may help protect the hospital from Erlanger's recent efforts to foreclose on the hospital's property."
In the news release, Hutcheson President and CEO Farrell Hayes said the reorganization plan would allow the hospital to "continue its primary mission of serving the healthcare needs of North Georgia residents."
"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," Hayes said.
See complete story in Thursday's Times Free Press.