Erlanger entered a contract with Seymour, Tenn.-based Cherokee Health Systems to manage Erlanger’s Southside Community Health Center and Dodson Avenue Community Health Center, both in Chattanooga, in December 2011.
Erlanger claims CHS breached its contract and opened a competing clinic in Chattanooga in January. The public health system is demanding CHS pay back $325,724, which is the amount Erlanger paid for its nine-month contract with CHS. Erlanger also seeks damages, the amount of which was unspecified in the report.
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