It appears Hutcheson hospital is being sold and its main campus will reopen.

That is because a settlement among the bankrupt hospital’s boards, its court-appointed trustee, creditors, the three-county hospital authority and the governments of Catoosa and Walker counties is being agreed upon.

A federal judge must approve a $4 million offer by potential buyer, People’s Choice Hospital, an Illinois-based company, but attorneys for all parties seem confident a deal is at hand.

Timing of the sale is critical as Hutcheson, which closed on Dec. 4, must reopen by Monday, Dec. 14, or surrender its license.

Walker County attorney Don Oliver, who until this week also served as legal counsel for Hutcheson, said the 15-page settlement sets the amount Erlanger will receive from the sale of the assets upon which Erlanger has security — the main campus in Fort Oglethorpe.

The settlement document also specifies that of any sale proceeds credited to Erlanger, the two counties will get dollar-for-dollar credit toward any debt the courts may ultimately determine is owed by the counties to Erlanger under the counties' guarantee of Authority debt.

Walker and Catoosa counties share guarantees of what was originally $20 million of loans made to Hutcheson, but that amount has grown to more than $32 million with interest and late payment penalties.

The settlement document, if agreed to and signed by all parties, will be presented before U.S. Bankruptcy Court judge Paul Bonapfel.

(Walker County Messenger)