A trustee will be appointed to oversee the bankruptcy case of Hutcheson Medical Center with a focus on getting the financially-strapped Fort Oglethorpe hospital sold.
The U.S. Trustee's Office had filed a motion asking that the bankruptcy be dissolved due to the debt rising to $6.3 million since the bankruptcy was filed last November. However, all parties finally agreed it was in the best interest of the parties to keep the hospital going while trying to nail down a buyer.
Hutcheson attorneys said earlier that one prospective buyer is discussing paying over $20 million for all the hospital assets, including the hospital, nursing home and surgery center (on Battlefield Parkway).
Also, it was agreed that a sale can go forward of Hutcheson's medical clinic in Trenton. The Dade County Industrial Development Authority will pay $350,000, while citing an urgent need to keep a clinic in Dade County.
Hutcheson attorney Rob Williamson said the clinic had been losing money and it had been slated to be closed.
Officials said Memorial Hospital plans to operate the Trenton clinic.
The sale does not include patient records or equipment.
“I am very pleased that the U.S. Trustee’s motion to dismiss Hutcheson’s Chapter 11 case has been resolved in Hutcheson’s favor,” said Farrell Hayes, CEO of Hutcheson Medical Center. “I’m really thankful and very much looking forward to working for and with the trustee. The trustee will be very helpful in moving this process forward.” The courtroom was full of Hutcheson employees during the first hearing held on Wednesday, in Rome.
Timothy Ashburn, MD, FCCP, a pulmonologist/intensivist and Hutcheson’s Chief Medical Officer, testified that he had no concerns about Hutcheson’s patient care or needed supplies. “Without a doubt, the dedication of Hutcheson’s employees is second to none. Hutcheson provides outstanding patient care.”
Even Susan Goodman, the court appointed ombudsman, testified that Hutcheson had a dedicated staff and that she was incredibly impressed with how employees go the extra mile to provide quality patient care.
“Patient care is, and has always been great at Hutcheson,” said Sandra Siniard, vice president of Patient Care. “The state conducted a very thorough and unannounced survey on Aug. 25-26 of last week and was very positive about Hutcheson and the quality care we provide.”
Clifton Patty of Catoosa County had earlier raised questions about the sale, saying the property is valued by the assessor at $500,000. However, he said he dropped his objection after speaking with Ted Rumley of Dade County.
Attorneys appeared Friday afternoon before Bankruptcy Court Judge Paul Bonapfel in Atlanta.
He urged continued cooperation in the case, saying that should result in "making the pie bigger." He said the different interests can then "argue about how to divide up the pie."
Judge Bonapfel said there is still urgency to find a buyer who can keep the hospital open for the community and employees and make it a going concern.
He said the trustee "won't be bringing any money will him."
He said if payroll taxes are not paid that could be a significant problem.
The hospital does not have "an unlimited amount of time," he said.
U.S. Trustee Martin Ochs said a patient care ombudsman will continue to monitor medical services at the hospital and make regular reports to the court.
The judge said bankruptcy does not half medical regulatory agencies from their oversight of the hospital.