After bankruptcy, Hutcheson still owes employees millions

Hutcheson Medical Center in Fort Oglethorpe, Ga., has not fully made good on debt it owes employees, and may never be able to, according to a Chattanooga Times Free Press report.

The news came at a March 31 public hearing at the hospital. During the hearing, Ronald Glass, a trustee who has overseen the bankrupt hospital's finances since September, told attendees the hospital has failed to cover $2.6 million worth of employee health insurance claims, according to the report. He added that a judge is allowing him to dedicate about $600,000 to making good on those unpaid bills.

But whether employees will get the money they're owed is uncertain.

"We would hope that we could settle those claims," Mr. Glass said, according to the report. "I cannot guarantee you that I can get any additional monies."

The U.S. Department of Labor has been investigating the insurance issue for more than a year, according to the report. Hutcheson Medical Center filed for chapter 11 bankruptcy protection in 2014. Without enough cash flow to support itself, the hospital closed Dec. 4. However, after securing a buyer, the hospital was able to reopen just three weeks later.

 

More articles on workforce and labor management:

Porter Regional Hospital to hire 35 workers: 5 things to know
UPMC increases minimum pay: 8 things to know
University of Cincinnati Medical Center to hire 500 workers: 3 things to know

 

 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars