Erlanger board bylaw changes would allow conflict-of-interest exemptions

Staff Photo by Matt Hamilton / Erlanger hospital is seen on Tuesday, Dec. 15, 2020.

The Erlanger Health System Board of Trustees will vote Thursday on whether to amend its bylaws to allow trustees to be employed by or under contract with the hospital under "extenuating circumstances" with a majority vote.

Jesse Neil, a health care attorney with Nashville-based Waller Law, explained the bylaw revisions during a meeting of the board's legal committee Wednesday.

Neil said the board's bylaws contain some "unusual" conflict of interest provisions that prevent 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.

"In my experience, I think most large organizations - particularly a hospital - often leverage trustees and former trustees in ways, particularly if there's a potential transaction or if there's other kinds of transformative, strategic things underway," Neil, speaking via teleconference, said during the meeting.