The Hamilton County Commission voted unanimously Wednesday to approve a resolution giving County Mayor Weston Wamp necessary power to transfer Erlanger Health System to a new private, nonprofit corporation in Tennessee.
“This has been a long, thorough and very team-focused process, all for the betterment of our community,” said Chairman Chip Baker.
Erlanger joins other “safety-net” hospitals across the country that are converting to 501(c)(3) nonprofit status.
In a statement released Feb. 9, 2022, Erlanger Board of Trustees Chairman Jim Coleman had said, “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.”
The commission also passed a resolution to give County Mayor Wamp first right of refusal for “certain” property at 921 E. 3rd St., the address of the Hamilton County Health Department, if and when it is sold by Chattanooga-Hamilton County Hospital Authority.
The two resolutions read as follows:
A Resolution authorizing the county mayor to enter into and execute the reversionary interest and reconveyance waiver necessary to facilitate the transfer of the Erlanger Health System to a newly formed Tennessee private nonprofit corporation and take such other actions as are necessary to consummate the transaction described in the mission agreement by and among the Chattanooga-Hamilton County Hospital Authority, Erlanger Health, and Hamilton County, Tennessee.
and
A Resolution authorizing the county mayor to enter into a grant of first right of refusal to the Chattanooga-Hamilton County Hospital Authority for certain real property located at 921 E. 3rd Street.
A third, related resolution that was unanimously approved reads:
A Resolution authorizing the county mayor to execute an agreement with the Chattanooga-Hamilton County Hospital Authority for the provision of necessary inpatient and outpatient medical services to persons who are in the custody of the law enforcement officers of Hamilton County, Tennessee.