CHI Memorial Hospital Chattanooga (Tenn.), part of Englewood, Colo.-based Catholic Health Initiatives, signed an agreement Aug. 7 to assume management operations at Fort Oglethorpe, Ga.-based Cornerstone Medical Center.
Larry Schumacher, CEO of CHI Memorial and senior vice president of operations for the southeast division of Catholic Health Initiatives, said Cornerstone Medical Center's parent company, Atlanta-based ValorBridge Partners, initially expressed interest in a potential partnership.
The exact terms of the agreement were not disclosed.
"In managing Cornerstone, CHI Memorial leaders and physicians will work collaboratively with the providers at Cornerstone, lending their expertise in clinical process improvement, safety and excellent patient experience, to provide high-quality care for the people who live and work in North Georgia," said Mr. Schumacher.
Cornerstone Medical Center was formerly known as Hutcheson Medical Center. The hospital became the center of a legal battle in 2011 after the counties responsible for the hospital refused to pay back their respective portions of a $20 million loan provided by Chattanooga-based Erlanger Health System, the hospital's former manager. The case was resolved in court last month.