Erlanger at HutchesonErlanger is a public hospital, and Hutcheson Medical Center in Fort Oglethorpe has a public hospital authority with trustees appointed by Walker, Dade and Catoosa counties. The counties and the authority together own Hutcheson’s buildings and assets, and lease them to a private, nonprofit Hutcheson Medical Center. Meanwhile, Hutcheson, on the verge of insolvency for much of the past decade, now owes Erlanger $21.55 million on a line of credit issued from the Chattanooga hospital.
Confusing as all that may seem, the bottom line is that both entities, no matter how many shell businesses they try to hide behind, are public hospitals that belong to us and spend taxpayer and patient money.
Both Walker and Catoosa counties are in line to have to repay Erlanger if Hutcheson defaults.
So how is it that both hospitals — most recently Hutcheson — have closed the door on the public and reporters when it comes to just what their mutual arrangement was? We are left wondering what the $20 million loan and $1.55 million in already-accrued interest has paid for.
On Monday, Hutcheson’s board met for about four hours in a closed session before announcing Tuesday afternoon that the two hospital systems were negotiating to end their partnership. Erlanger took over management of Hutcheson in April 2011 shortly after Hutcheson’s then-CEO Charles Stewart resigned.