Chattanooga, Tenn.-based Erlanger Health System, a safety-net hospital system, will pursue transitioning into a 501(c)(3) nonprofit charitable organization.
The process could take several months, according to a Feb. 9 news release.
Converting to a nonprofit would provide several benefits, such as improving clinical quality and patient outcomes, the release said. It would also give the system more flexibility to pursue partnerships and position it to receive more access to capital.
"This is all about doing what is right for our patients," said Jim Coleman, chair of Erlanger's board of trustees. "We must be willing to respond to today's changing healthcare environment in order to have the people, facilities and technology needed to deliver the best possible care to those who need it most."