Erlanger Health System officials said Wednesday they plan to transition to 501(c)(3) status.
Jim Coleman, chairman of the Erlanger Board of Trustees, said, “This important work is driven by our commitment to our mission, the responsibility to do everything we can to secure a strong future for this important community pillar, and to ensure Erlanger continues to provide the best possible care for everyone in Chattanooga and our growing region for decades to come.
"Many safety-net hospitals across the country have already transitioned to a 501(c)(3) structure, including UT Medical Center in Tennessee and Grady Medical Center in Georgia.
The nonprofit structure allows health systems to achieve greater operational flexibility in a quickly changing healthcare environment, and the ability to seek greater philanthropic contributions, among other significant benefits.
“Our top priority is to continue serving as the region’s safety-net hospital. We have seen a marked increase in individuals who seek out Erlanger for medical care they would not be able to access otherwise. In order to continue providing this crucial service, we know we must be willing to make a change.
"The Board of Trustees anticipates this process will take many months, and is working closely with the Hamilton County Commission and other elected officials to ensure alignment and support as the health system transforms to meet the challenges of today’s healthcare environment.
Changing the structure of Erlanger Health System would have meaningful benefits, ultimately enhancing clinical excellence and patient outcomes by attracting and retaining high-caliber clinicians and caregivers, having added flexibility to explore partnerships that are right for the community and positioning the organization for new and additional access to capital."
“This is all about doing what is right for our patients. We must be willing to respond to today’s changing healthcare environment in order to have the people, facilities and technology needed to deliver the best possible care to those who need it most.”
The County Commission is to consider a resolution next Wednesday hiring the law firm of Baker, Donelson, Bearman, Caldwell & Berkowitz. County Mayor Jim Coppinger said it was for a special project at Erlanger.