LaFAYETTE, Ga. – Ending a dispute that has lasted almost seven years, Walker County Commissioner Shannon Whitfield agreed to pay off an $8.7 million debt to Erlanger Health System.
Whitfield signed an agreement with the hospital during a special called meeting Thursday, promising to pay the debt by the end of his term in 2020. The county will give the hospital $2.6 million in 2018 and again in 2019, followed by $3.5 million in the third year.
In exchange, Erlanger will let the county skirt on interest on the debt, which sits at about $240,000 as of today. Whitfield said the interest would have grown to about $400,000 by the end of 2020. The agreement also allows Walker County to avoid paying $180,000 in attorney’s fees.
“It is a turning point for Walker County,” Whitfield said. “We’re bringing closure.”
Timeline
April 2011: Erlanger loans Hutcheson Medical Center $20 million. Walker County Commissioner Bebe Heiskell backs half the loan.September 2013: Hutcheson’s board ends a management agreement with Erlanger.November 2014: Hutcheson files for Ch. 11 bankruptcy, preventing Erlanger from foreclosing on the hospital.December 2015: Hutcheson shuts down; Valor Bridge purchases the property for $4.2 million. Erlanger received some pf that money and agreed to reduce Walker County’s debt to $8.7 million.December 2015: Erlanger sues Walker County for the money.August 2016: U.S. District Court Judge Harold Murphy orders Walker County to pay. Walker County appeals.November 2016: Shannon Whitfield defeats Bebe Heiskell for Walker County Commissioner.July 2017: U.S. Court of Appeals upholds previous order for Walker County to pay full amount, plus interest.January 2018: Walker County and Erlanger settle.