The County Commission on Wednesday approved the change by Erlanger Health System to a non-profit entity.
Erlanger officials issued this statement:
The Erlanger Health System Board of Trustees is pleased to share that the Hamilton County Commission approved the important covenants and ongoing protections for the health system and the community for the organization’s transition to an independent 501(c)3 non-profit structure.
The covenants and protections were developed through a thoughtful and collaborative process with the County Commission and Legislative Delegation. The Board is deeply appreciative of the good spirit and leadership of the area’s elected leaders throughout this process, and looks forward to close, ongoing engagement as the process continues.
Today’s approval marks an important milestone as the health system continues to make progress toward a transition to an independent 501(c)(3) non-profit structure.
The legally binding covenants and protections approved by the County Commission include:
· A commitment to maintaining the historic mission of Erlanger as a teaching hospital, regional referral center, and safety-net provider for Hamilton County and maintaining the identity of Erlanger.
· Continuing our historic safety-net mission of Erlanger as an acute care hospital with robust services in this community, including the Trauma Center, the Children’s Hospital, the Federally Qualified Health Center programs, Erlanger’s medical education mission, and the many other services we provide today.
· Continued participation in Medicare Fee for Service programs and Medicaid.
· Charity care remaining consistent with Erlanger’s historical policies.
Oversight and Monitoring
Collaboration, oversight, and reporting efforts are a crucial part of this next step, and include:
· A 3-member Oversight Monitor Board will be appointed and approved by various parties involved. The Oversight Monitor Board will be separate and independent from Erlanger and its Board and will work on behalf of the community to ensure the covenants and commitments are met.
· The County Commission, Oversight Monitor Board, and Tennessee Attorney General will have approval authority over any potential sale, lease, or transfer of substantially all of the assets of the new entity as well as amendments to items regarding governance, tax-exempt and nonprofit status.
Commitment to Employees, Physicians and Patients
We take seriously our responsibility to support our employees and physicians in their important work, and to that end, have ensured that:
· Current pay levels and benefits will transition to the new structure.
· The accrued pension benefits will be unchanged.
· The restructuring will not require changes to the Medical Staff bylaws, rules, or regulations.
Additionally, patients will experience no changes to how care is provided and will continue to be able to access the care they need from the providers they know and trust.
Next Steps
At this point, Erlanger Health System will now undergo a several months-long process to finalize the new structure and will continue its ongoing collaborative efforts with the Mayor, County Commission, Legislative Delegation, and other stakeholders. Moving forward with this important work, the health system remains focused on securing Erlanger’s mission as the region’s safety-net hospital and providing high-quality care for its patients and communities.