The Erlanger Health System Board of Trustees approved two changes to the group’s bylaws Thursday, one of which allows trustees to be employed by or contract with the hospital in certain circumstances.
The change, passed unanimously in a public meeting Thursday morning, comes as the board explores changing Erlanger’s structure from a governmental entity to an independent nonprofit organization. Such a change will require support from both the Hamilton County Commission and the legislative delegation.
Jesse Neil, a health care attorney with Nashville-based Waller Law, told the board by teleconference the change would give it some increased flexibility as it potentially undergoes a major change. Neil began representing the Erlanger board in August 2021 and is helping navigate efforts to restructure the health system.
Previously, the board’s bylaws contained conflict of interest provisions that barred trustees or any business entity in which a trustee has a controlling interest from being employed by or contracting with Erlanger until at least two years after the trustee’s service is complete, without exceptions.
Though those same provisions remain intact, trustees can now decide to grant exemptions if they deem necessary in “extraordinary circumstances.”