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Erlanger Hospital has filed a federal suit against Hutcheson Medical Center and both Walker and Catoosa counties seeking repayment of $20.5 million in loans that Erlanger made in 2011 when the two hospitals entered into a management agreement.

The initial suit was filed on Thursday of last week in U.S. District Court in Rome for $550,000. A separate suite for the $20 million should be filed in a few days according to reports.

Dade County refused to back the notes for Hutcheson and was not named in the suit.

Dade County Executive Ted Rumley told the Sentinel that they decided not to back the promissory note for fear of this kind of result.

“We didn’t want to put taxpayers at risk for that large amount of money,” Rumley said.



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