Erlanger Health System, a five-hospital system in Chattanooga, Tenn., is in talks to partner with 25-bed Murphy (N.C.) Medical Center, according to the Times Free Press.
The medical center, which includes a hospital, nursing home, rehabilitation center and other facilities, began soliciting proposals from interested parties last year.
Erlanger submitted a proposal in February to purchase a 10-year lease for the property, with the option to renew the lease for an additional 10 years. The proposal did not include the nursing home, which MMC officials are reportedly trying to sell separately.
Erlanger maintains affiliation agreements with 15 hospitals within a 150-mile radius of Chattanooga, according to the report.
Officials said the organizations have not finalized the structure of the proposed partnership, and said a lease agreement is just one of the options under consideration, according to the report. Officials also said a decision on Erlanger's proposal will most likely occur at the end of the year.
"This is a very positive thing and we're excited about it. Ultimately, our goal is to improve population health throughout the region, decrease the cost of health care and improve it at the same time," said Erlanger Health System President and CEO Kevin Spiegel. "I think the exploration of this opportunity is clearly aligned [with] Erlanger's mission of being an academic tertiary referral source for our service area. We are the closest academic, tertiary hospital for adult, pediatric, trauma, stroke, heart care for Murphy — there's nobody else."