The U.S. Trustee's Office and Erlanger Health System are both raising numerous objections to a plan by bankruptcy trustee Ronald Glass to auction off the financially failing Hutcheson Medical Center, The Chattanoogan reported today. The Fort Oglethorpe, Tenn.-based hospital has laid off a number of additional employees since the auction plan was presented. Assistant U.S. Trustee Martin Ochs said, "If the nursing home assets are sold, but there is not a sale of the hospital facility without sufficient funds reserved from the sale proceeds, the trustee will be left with inadequate funds to operate the hospital." A hearing on the proposed auction is set for Wednesday morning in the bankruptcy court in Rome, Ga.
For more information on hospital and health care bankruptcies, be sure to pick up a copy of the ABI Health Care Insolvency Manual, Third Edition.
