The Hutcheson Medical Center building in Fort Oglethorpe, Ga.RINGGOLD, Ga. - Erlanger Health System pressured officials of Walker and Catoosa counties Thursday night.
During a special hearing to discuss the hospital's pending foreclosure of Hutcheson Medical Center, Erlanger Vice President Gregg Gentry told an overflowing room inside the Catoosa County Civic Center to turn their ire toward their local politicians. If you don't want Erlanger to sell the North Georgia hospital's property, Gentry said, tell the commissioners of Catoosa and Walker counties to give Erlanger money.
After giving Hutcheson a $20 million loan three years ago, Erlanger plans to foreclose on the property to get some of that money back. But, Gentry told the group, Hutcheson will stay open if the counties' leaders each give Erlanger $10 million.
"The key is in the government officials' hands," he said. "They have the authority. They have the ability."
The crowd, many of them Hutcheson employees, brought white and blue signs reading "SaveHutcheson.com." Many attacked Gentry and called Erlanger selfish, saying the Chattanooga hospital's leaders value money instead of lives.
"Does Erlanger intend to close the hospital?" Kim Plant asked Gentry during a question-and-answer session.
"We don't--" Gentry started.
"This is a yes or no question," Plant said.
"Yes or no!" a group shouted.
"We don't intend to close the hospital," Gentry said. "Today."
The crowd burst into sarcastic laughter.
Hutcheson's attorneys say Thursday's meeting should never have happened. On Wednesday, they asked a federal judge to prevent a scheduled Nov. 4 auction at which Erlanger will sell Hutcheson to the highest bidder.
U.S. District Court Judge Harold L. Murphy will rule on that request after a hearing next week -- either Thursday or Friday.
This will be Murphy's second ruling in the case.
Erlanger first tried to foreclose on Hutcheson in July. But the hospital's attorney, former Georgia Gov. Roy Barnes, argued that auctioning off Hutcheson would harm the North Georgia community, which needed the hospital. He argued that a foreclosure would hurt Hutcheson's chances of winning its lawsuit against Erlanger.
But Atlanta attorney Ed Marshall argued that Erlanger has every right to foreclose -- how else can Erlanger get its money back?
On Aug. 4, Murphy halted the proposed auction, saying the public had not had a chance to voice opinions on the sale.
He noted that selling Hutcheson is not like selling just any building.
"We're dealing with a hospital," the judge said, "which is a unique institution, created and operated to save lives."
Murphy told Hutcheson officials to advertise the proposed sale, and said Erlanger could hold the auction 60 days later.
The hospital advertised the sale on Aug. 27 and scheduled public hearings on Nov. 11, Nov. 13 and Nov. 18. That meant the auction couldn't take place until after Oct. 27.
Erlanger published a separate notice Sept. 4 and also organized Thursday's public hearing, which is separate from Hutcheson's scheduled meetings.
On Wednesday, Hutcheson's attorneys objected to Erlanger's schedule. They say Erlanger could not do anything -- no advertisements about the sale, no public hearings -- until the 60-day "buffer period" ended Oct. 27.
"Erlanger has acted contrary to both the spirit and the letter of this court's Aug. 4, 2014, order and is in contempt," a group of lawyers including Barnes wrote in a court filing on behalf of Hutcheson.
Erlanger loaned Hutcheson $20.5 million and began managing the hospital in May 2011. But that agreement ended in August 2013 when Hutcheson officials said Erlanger failed to hold up its end of the bargain.
In January, Erlanger sued Hutcheson, demanding it pay back the loan. In February, Hutcheson sued Erlanger, saying the Chattanooga hospital didn't abide by its contract with Hutcheson.
Both of those cases are pending.
Note: An earlier version of this story misspelled Erlanger Vice President Gregg Gentry's first name.
Contact staff writer Tyler Jett at tjett@timesfreepress.com or at 423-757-6476.