Hutcheson Medical Center ordered to begin laying off employees immediately

Hospital says it is fighting order

Hutcheson Hospital and Medical Center is in Fort Oglethorpe, Ga..
Hutcheson Hospital and Medical Center is in Fort Oglethorpe, Ga..

Facing an order to begin laying off employees today, Hutcheson Medical Center leaders will ask a judge for permission to keep the hospital running for an extra two weeks.

Stuart James, an attorney representing Walker County, plans to file a motion in U.S. Bankruptcy Court asking to keep the hospital running through Dec. 21, according to internal emails obtained by the Times Free Press. In the motion, James tells Judge Paul Bonapfel that Bankruptcy Trustee Ronald Glass plans to lay off employees later today.

Glass also plans to make the hospital stop accepting patients Friday, then to shut down full time on Dec. 4.

James wrote in his motion that the hospital has enough money to stay open until Dec. 21. He said closing the hospital hurts Hutcheson's chances of getting more bids to buy the place - which would allow the community hospital to stay open.

Glass did not immediately return a call seeking comment. Hutcheson CEO Farrell Hayes was also not available for comment this afternoon.

photo Stuart James

James, meanwhile, declined to comment on how specifically he knows the hospital has enough money on hand to keep running, other than to say his motion is "based upon my client's instructions and based upon representation of information to me."

A hospital source told the Times Free Press that Hutcheson leaders expect to receive about $850,000 from the state government for insurance reimbursements like Medicaid. The source said that Hayes believes this money will allow the hospital to stay open through Dec. 21.

James also added in his motion that a second bidder has offered to buy Hutcheson. In addition to Prime Healthcare Services, a California company that has offered to buy the property for $7 million, the hospital received an offer from Apollo Healthcare, an Atlanta company that already manages Hutcheson's emergency room.

The motion does not mention how much money Apollo has offered. Bidders are expected to present offers during an auction on Dec. 3.

"It is against the interests of the hospital for the trustee to layoff employees with the two bids pending or to be submitted," James wrote in the motion. "It is, furthermore, against the hospital's interests for the hospital to close its doors on December 4, 2015."

He added: "The employees of the hospital are continuing to work at the hospital and are the 'hard-core employees' who believe in the hospital."

This is a developing story. For more information, read tomorrow's Times Free Press.

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