A U.S. Bankruptcy Court judge ruled this morning that Hutcheson Medical Center will need to start laying off employees this week.
Stuart James, an attorney representing Walker County, which hoped to delay the layoffs by at least a couple weeks, said Judge Paul Bonapfel denied his motion this morning. Bonapfel ruled that the bankruptcy trustee appointed to manage the hospital’s finances has the right to demand layoffs.
It’s unclear exactly when employees will lose their jobs. But multiple Hutcheson sources told the Times Free Press that the trustee, Ronald Glass, told CEO Farrell Hayes to begin letting employees by 4 p.m. Monday. James halted that effort by filing a motion on Monday afternoon.
Stuart JamesBut now that Bonapfel has denied James’ motion, Glass can order the layoffs again. Earlier this month, Glass told Bonapfel he wanted to shut down inpatient services this Friday and close the emergency room by 8 a.m. on Dec. 4.
Hutcheson has been in Ch. 11 bankruptcy since last November. At the time, Hutcheson’s leaders said the hospital was about $80 million in debt. The largest creditor, Regions Bank, was waiting for about $33 million.