Erlanger Medical Center has reportedly filed suit against Walker County, saying they're just seeking payment of the loan guarantee for a note related to Hutcheson Hospital.

Much to the surprise of many, Catoosa County is not named in the suit. Both counties had agreed to back a loan of $10 million each, when Erlanger made operating loans to Hutcheson; according to litigation recently filed in court, it appears Catoosa County is (quote) "willing to honor its obligations to Erlanger." (end-quote).

According to a settlement agreement – Erlanger will receive a portion of the proceeds of the bankruptcy sale of specific Hutcheson assets and the amount owed by the two counties will then be decreased by that amount.

Walker County attorney Don Oliver told media outlets that he was surprised by the Catoosa County stand, saying he was under the impression that it was his belief that Catoosa agreed with him that neither county owes Erlanger a penny.

(WQCH)