Citing a desire to be more competitive and overcome financial challenges, Lexington Medical Center wants to change its structure from a governmental organization to a nonprofit, according to the Lexington Chronicle.
Under its current structure as a governmental entity, West Columbia, S.C.-based Lexington Medical Center said it struggles to compete financially with other hospital systems.
For example, Lexington Medical Center spends more than $106 million annually in pension expenses as part of the South Carolina hospital, which equates to about pension expense is 21.3 percent of its payroll. Other hospitals in the state that are nonprofits pay just 1 percent to 3 percent.
The medical center also is restricted in its ability to earn a return on its reserve as a government entity, according to the report.
The board of the health system is requesting that Lexington County Council change the structure.
"The change will provide enhanced flexibility that will keep Lexington Medical Center local, independent and strong," hospital spokesperson Jennifer Wilson, told the Chronicle.