NASHVILLE – Tennessee lawmakers gave final approval Thursday to a bill allowing government-owned Erlanger Health System to pursue plans to convert the hospital system into a nonprofit corporation that leaders argue will help enable its survival into the future by becoming more competitive.
Senators voted 29-0 for House Bill 2915, which cleared the lower chamber on Wednesday, sending the private act to Gov. Bill Lee.
“With Gov. Lee’s signature, we will take an important and historic step forward for Hamilton County and the surrounding region as we work to secure the best possible outcome for Erlanger,” stated Jim Coleman, chairman of the Chattanooga-Hamilton County Hospital Authority, which has had responsibility over Erlanger since the authority was created under a 1976 law.
Coleman called it critical for Erlanger to transition to an independent, IRS-certified 501(c)(3) structure. It will help ensure the continued ability to serve as the safety-net hospital for the Chattanooga region, he said. Nothing in the legislation would prevent the system from being sold to a for-profit entity.
Erlanger officials have complained for years that the public hospital is put at a disadvantage by being subject to the Tennessee Public Records Act and having to make many records and meetings public, including for competitors.