Erlanger follows through with $20 million lawsuit against Hutcheson

Erlanger follows through with $20 million lawsuit against Hutcheson

February 27th, 2014 by Kate Harrison Belz in Local - Breaking News

The Erlanger Baroness campus.

Photo by Staff File Photo/Times Free Press.

Erlanger Health System has filed a $20 million lawsuit against Hutcheson Medical Center, on the heels of a $550,000 lawsuit Erlanger filed against the Fort Oglethorpe, Ga., hospital last month, Erlanger CEO Kevin Spiegel said.

Erlanger has filed the suit against the Hospital Authority of Walker, Dade and Catoosa counties -- the governing body over Hutcheson.

Walker and Catoosa counties were not included in the suit.

The federal lawsuit, filed in Rome, Ga., was not available Thursday evening.

Erlanger is seeking repayment for the $20.5 it originally loaned Hutcheson when the two hospitals entered a management agreement in 2011. The agreement ended last year after a leasing arrangement between the two hospitals fell apart.

Erlanger had threatened to follow through with the $20 million lawsuit, but both parties had said they were involved in negotiations after the initial lawsuit.

For more information, read Friday's Times Free Press.