The board of directors for Hutcheson Medical Center and its Hospital Authority announced support of plans by Catoosa and Walker Counties "to back financing with a bond for restructuring and consolidating long term debt from the previous administrations."
As part of the agreement, the counties asked Hutcheson to explore alternative long-term financing strategies, including leasing Hutcheson to a hospital entity, "as a way to minimize taxpayer risk."
Hutcheson Board Chairman Corky Jewell said the hospital board will work with the counties to pursue longer-term strategic alternatives, including a leasing scenario, as it weighs the best options to restructure hospital debt.
He said, “Hutcheson leaders and staff have proven the value of this hospital in the North Georgia community and demonstrated the hospital’s profitability over the past year.
“The hospital has a year-to-date improvement of $7.4 million over last year and is in the black for the first time in seven years.
Still, the debt service left by the previous administration must be addressed in order for the hospital to continue to grow and prosper.
"We appreciate the support of Walker and Catoosa Counties in ensuring that Hutcheson can continue to be a vital hospital by backing the financial needs and allowing us to more effectively manage our long-term debt.”
Erlanger Health System, based in Chattanooga, in April 2011 began a partnership with Hutcheson at a time when Hutcheson was facing continuing losses.
Erlanger official Roger Forgey has been managing Hutcheson.
The facility for a time was called Hutcheson at Erlanger, but it later dropped the
Erlanger title.
Erlanger since the partnership has been facing its own financial woes, losing some $9 million thus far in this fiscal year.
Erlanger had agreed to pump $20 million into propping up Hutcheson, and a sizable portion of that amount has been spent.