Hutcheson Medical Center in Fort Oglethorpe said that it would file for bankruptcy last week in an ongoing saga of the ailing hospital. Although they will be filing for bankruptcy, the hospital will continue in its day-to-day operations. The decision to file for bankruptcy protection is a move to help protect the hospital from being foreclosed upon by Erlanger, a Chattanooga-based hospital that is trying to recoup $20 million loaned to Hutcheson. The management is hopeful that bankruptcy will allow them to reorganize and be a much stronger organization. From the Chattanoogan:
Hutcheson officials said, “In recent years many organizations, such as GM and Chrysler and Georgia-based companies including Delta, have been able to use the Chapter 11 reorganization process successfully as a vehicle to restructure their financial obligations while preserving jobs and continuing to serve the public.”
“We fully expect Hutcheson to join that list of companies who have emerged from Chapter 11 reorganization even stronger than before,” said Mr. Jewell.
Hutcheson’s announcement came only hours prior to Governor Nathan Deal’s panel to discuss ailing hospitals in Georgia.