The money will be used to pay off debt, including $12 million owed to Medicare and a portion of $10 million owed to vendors.
The Medicare debt carries an 11-percent interest rate, compared to a 1-percent interest rate on the bond, which must be paid off in two years.
“We need to keep in mind that this debt was incurred by a previous administration,” commissioner Jim Cutler said. “We are slowly working on turning the hospital around.”
Commission chairman Keith Greene said, “The debt to Medicare is the driving point. With its 11 percent rate, (Hutcheson) would never get ahead.”
Also, about $11 million of the money will be used to upgrade and replace outdated equipment at the hospital.
Commissioners approved the resolution for the $25 million note during a special called meeting Thursday morning. The resolution replaces an original resolution, passed in December 2012, which called for $60 million in funds. According to the resolution, Hutcheson owes at least $70 million.
“Walker and Catoosa did what they had to do,” said Dade County commissioner Robert Goff, who attended Thursday morning’s Catoosa commissioner’s meeting. “We support them in their action. It’s a win-win situation.”
The resolution also calls for a change in the makeup of the Hospital Authority’s board of trustees.
Walker and Catoosa have approved a 4-4-1 board makeup: four representatives each from Walker and Catoosa counties, and one representative from Dade County.
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