Hospital with a history files for bankruptcy

Small facility in Houston County, the first ever built by HCA, enters Chapter 11 process after current owner does likewise

Email | Print By E. Thomas Wood

The first facility ever built by Hospital Corporation of America has filed for bankruptcy, 10 months after its current owner did the same.

Trinity Hospital Inc., a subsidiary of Brentwood-based Associated Healthcare Systems Inc., filed for Chapter 11 protection this week in Nashville's U.S. Bankruptcy Court. The company operates 25-bed Trinity Hospital in Erin, Tenn., southwest of Clarksville.

The small community hospital was the first for HCA, which was founded in 1968. The architectural firm of Gresham & Smith, also just getting its start in the business, designed the facility. Joe M. Rodgers' fledgling construction firm built it. Both the architect and the builder were destined for national prominence, as was HCA itself.

LifePoint Hospitals Inc., which HCA spun out as an independent rural hospital operator in 1997, sold the facility to Associated Healthcare in 2000.

Associated Healthcare filed a Chapter 11 petition in October 2007 (copy available at this link), listing more than $8.6 million in debts to its 20 largest creditors.

In April, Associated Healthcare told the court that it planned to sell Trinity to a newly formed Mississippi company. But creditor AMC-Tennessee Inc. objected to what it called an "unusual sale process" and the matter remained before the court until Trinity's filing on Tuesday.

Attorney G. Rhea Bucy of Gullett, Sanford, Robinson & Martin PLLC, who represents Associated and Trinity in their bankruptcy cases, could not be reached today. Attempts to reach A. Ronald Turner, president and CEO of Associated Healthcare, were also unsuccessful.

Yvette Gillespie, chief executive officer of Trinity Hospital, emphasized that she anticipates "no change in the services we deliver to our community."