Peachtree – Erlanger Health Systems, which operates Erlanger Western Carolina Hospital in Peachtree, has received approval to transition to an independent nonprofit 501(c)(3) organization.
The health system had been a nonprofit public benefit corporation registered in Tennessee and incorporated as the Chattanooga-Hamilton County Hospital Authority.
According to Sheila Boyington, chair of the Erlanger Health Systems Board of Trustees, and Jim Coleman, president and CEO of Erlanger Health System, the Board of Trustees and leadership team appreciates the Tennessee Attorney General’s review and approval of Erlanger Health System’s transition to an independent nonprofit 501(c)(3) organization.
“We began this journey over a year ago with a primary objective to best position Erlanger Health System to continue our mission as the region’s safety-net hospital,” the health system said in a release.
“Becoming an independent nonprofit 501(c)(3) organization will give us greater flexibility needed to sustain and grow our
services and do our utmost to ensure we are here to provide the best health care possible to everyone in our community for decades to come.”
The health system plans to continue its mission, the release says, including:
- A commitment to maintaining the historic mission of Erlanger as a teaching hospital, regional referral center and safety-net provider for Hamilton County and the surrounding area and maintaining the identity of Erlanger.
- Continuing its historic safety-net mission 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 and Erlanger’s medical education mission.
- Continued participation in Medicare Fee for Service programs and Medicaid.
- Charity care remaining consistent with Erlanger’s historical policies and similarly situated safety-net hospitals in Tennessee.
“Though subject to a different set of regulatory requirements, we remain committed to open communications and will continue to provide regular information to our community, including annual public reporting of financial activity under the Internal Revenue Service’s Form 990 process,” according to the release.
“Like other hospitals that operate as independent nonprofit 501(c)(3)s, we remain accountable for our performance to a number of federal and state public bodies and under a number of regulatory structures, including the Tennessee Attorney General, the federal Medicare Conditions of Participation and an accreditation process approved by the U.S. Centers for Medicare & Medicaid.”
The new status will give the health system “increased ability to provide high-quality services and remain competitive in today’s changing healthcare marketplace,” according to the release.
Property tax implications in Cherokee County are unknown, county tax assessor Teresa Ricks said.
“It is too early to tell what this means for Cherokee County concerning property taxes,” she said. “There are too many ‘what if’s’ at this time to give any kind of guesstimate on taxable (or non-taxable) value.
“While some hospital properties may be tax exempt, they have to be wholly and exclusively used for that purpose. Erlanger should apply for tax exempt status next year during the listing period for any properties they may wish to have excluded.”