Erlanger made its $20 million loan to financially troubled Hutcheson Medical Center in 2011. Catoosa and Walker County officials guaranteed the loan. Hutcheson Medical Center filed for chapter 11 bankruptcy protection in 2014. Without enough cash flow to support itself, the hospital closed Dec. 4. However, after securing a buyer, the hospital was able to reopen just three weeks later.
Now that the hospital has been sold, Erlanger is trying to recoup its loan, according to a WDEF report. In its recently filed lawsuit, Erlanger claims Catoosa County officials are cooperating with Erlanger to pay back the money, but Walker County officials are not.
Stuart James, a lawyer who serves as special counsel for Walker County,
was surprised by Erlanger’s lawsuit. He said he does not understand why Catoosa County is not also being sued, according to the report.
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