Prisma Health to acquire Erlanger Health System in deal worth $2 billion

Prisma Health has signed a non-binding letter of intent to acquire Erlanger Health System, a nonprofit operator of seven hospitals with approximately 1,000 beds in the Chattanooga, Tennessee region, in exchange for a $2 billion strategic capital commitment. Erlanger's facilities include a teaching hospital affiliated with the University of Tennessee Health Science Center, a children's hospital, and a Level 1 trauma center serving a 50,000-square-mile region across four states. The deal requires approvals from Erlanger's board, its independent oversight monitor board, the local county commission, and state and federal regulators. Upon closing, Erlanger CEO Jim Coleman would serve as regional CEO for an East Tennessee headquarters in Chattanooga, and the combined system would operate 27 hospitals.