Hospital Authority offers Erlanger a settlement

The governing board for Hutcheson Medical Center has offered Erlanger a settlement following a federal judge's ruling granting Erlanger partial summary judgment. U.S. District Court Judge Harold Murphy awarded $36 million to Erlanger: the $20 million loan it gave the now-bankrupt Hutcheson in 2011 — which was backed by Catoosa and Walker counties — as well as $16 million for "late fees" and interest on that loan. The governing board for Hutcheson Medical Center has offered Erlanger a settlement following a federal judge's ruling granting Erlanger partial summary judgment. U.S. District Court Judge Harold Murphy awarded $36 million to Erlanger: the $20 million loan it gave the now-bankrupt Hutcheson in 2011 — which was backed by Catoosa and Walker counties — as well as $16 million for "late fees" and interest on that loan.

By Tyler Jett May 11, 2016 4 min read

Following a 3 1/2-hour meeting last Monday, the Hospital Authority of Catoosa, Dade and Walker Counties voted 3-1 to authorize its chairman to execute a settlement agreement with Erlanger.

Tom Weldon, the attorney for the Hospital Authority, said following the vote that he could not explain the agreement. He needed to inform Erlanger’s lawyers that they had accepted the deal. Erlanger’s team would then have to do the same.

The board does not have to disclose what it discusses when it meets about a pending lawsuit.

“I don’t want to upset the apple cart,” Weldon said. “There’s a lot going on right now.”

He added: “It would be accurate to say parties are moving forward with settlement negotiations and are working toward a mutual resolution.”