Ronald Glass Named To Oversee Hutcheson Medical Center Bankruptcy After 1st Trustee Abruptly Resigns

  • Monday, September 21, 2015

An Atlanta attorney has been named to oversee the bankruptcy of Hutcheson Medical Center after the first appointee abruptly resigned.

U.S. Trustee Guy Gebhardt, who had initially asked that the bankruptcy be dissolved, first named Sandra Austin of an Atlanta healthcare firm.

A few days later, she abruptly resigned.

The U.S. Trustee then named Ronald Glass, who is currently the plan administrator in the Dairy Production Systems bankruptcy and the Piccadilly Cafeteria case.

It was stated earlier that the trustee would not get involved in the day-to-day management of the financially-ailing Fort Oglethorpe Hospital, but would focus on expediting a sale of the hospital and its various assets, including a nursing home on the main campus and a surgery center on Battlefield Parkway.

Bankruptcy Judge Paul Bonapfel earlier told attorneys that, since the hospital had already lost over $6 million since filing for bankruptcy last November, that it was urgent to find a buyer and close the deal.

Hutcheson officials said they had been in contact with potential purchasers, including one willing to pay over $20 million for all its assets.

Both attorney Glass and Ms. Austin had affirmed that they had no ties with any of the parties involved, including the three counties of the Hospital Authority and Erlanger Health System.

Meanwhile, Erlanger officials said they are still holding a $20 million Hutcheson debt on its books and believed it likely will eventually be paid in full.

Erlanger put $20 million into Hutcheson during a period when it managed the hospital.

A bitter and expensive lawsuit between Erlanger and Hutcheson is currently on hold.

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