Erlanger claims that, in May 2011, it entered an agreement to provide management services to Hutcheson, which is in Fort Ogelthorpe, Ga. As part of that alleged agreement, Erlanger issued a line of credit for $20 million to help meet Hutcheson’s operating needs. Then, in May 2013, Erlanger allegedly loaned Hutcheson another $550,000 to help the hospital meet its payroll expenses, according to the report.
In January, Erlanger sent a letter to Hutcheson seeking repayment of the $20 million and $550,000 loans, but the requests in the letter were allegedly not resolved. This federal lawsuit seeks to recoup the $20 million, as Erlanger filed its first suit in late January seeking repayment of the $550,000 loan, according to the report.
Hutcheson has hired former Georgia governor Roy Barnes to defend it against the litigation, according to the report.
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