The Erlanger Health System board on Thursday night unanimously approved the hospital assuming operation of a Murphy, N.C. hospital.
Erlanger COO Rob Brooks, seeking approval for the "change of control” agreement for Murphy Medical Center, told trustees that Erlanger had received input from many organizations and individuals leading up to the decision.
Under the terms of the agreement, the Erlanger Health System, which would include Murphy Medical Center, "will continue to operate as a regional healthcare system committed to (a) reducing the cost and improving the quality of/access to services and (b) creating new services and levels of care that most efficiently and effectively meet the healthcare needs of the region."
Mr.
Brooks said Erlanger would develop physician leadership and integrate physicians into the health system’s operations in accordance with the same standards applied by Erlanger to other Erlanger hospitals similar in size and scope of services.
In addition, Erlanger will recruit physicians and other clinical professionals to replace those leaving Murphy’s service area, whether by retirement or otherwise.
Mr. Brooks told trustees more than 60 percent of Erlanger’s patients currently come from outside Hamilton County and are typically referred from other hospitals and physicians. He said, “Why is that important to Erlanger? Because we don’t own or operate any of those facilities, so all those patients – more than 60 percent of our business – are at risk of going somewhere else if we aren’t the provider that will be there for them.”
Erlanger President & CEO Kevin M. Spiegel said, “Rural hospitals that partner with larger systems fare better, and treating patients close to their homes when it is appropriate will both improve care and lower costs.”
He said rural hospitals usually lack an alignment strategy and the ones that have partnered have been successful. Those that have not partnered with a larger system, he said, “just can’t seem to get it done.”
Erlanger officially will acquire its first hospital outside Tennessee on April 1, along with a market area of 45,000 residents in Cherokee, Graham and Clay Counties in western North Carolina.
Murphy Medical Center will become Erlanger’s sixth hospital under the terms of this agreement.