Erlanger Health System and Prisma Health Sign Letter of Intent for Strategic Partnership
Transaction Announcement
Erlanger Health System, a seven-hospital nonprofit health system based in Chattanooga, Tennessee, has signed a non-binding Letter of Intent (LOI) to pursue a strategic partnership with Prisma Health, one of the Southeast’s leading nonprofit health systems. The proposed partnership is intended to build on Erlanger’s longstanding commitment to high-quality, compassionate care while supporting the health system’s long-term sustainability, growth, and continued innovation.
“More than 130 years ago, Erlanger was founded through an extraordinary gift that reflected a belief in our community and its potential, and today this investment assures our ability to meet our mission well into the future,” said Jim Coleman, President and CEO of Erlanger. “By partnering with Prisma Health, we will be able to fast track our vision and keep Erlanger at the forefront of medicine. Together, we will ensure Erlanger remains a leader in healthcare for the next century and beyond.”
The proposed partnership includes approximately $2 billion in strategic capital investments to expand access to specialized care, enhance clinical capabilities, and support innovation. It also includes investments in facilities, mission-critical programs, graduate medical education and research, workforce development, and the long-term strength and sustainability of Erlanger Health System.
As part of the proposed transaction, Prisma Health will establish its East Tennessee regional headquarters in Chattanooga. Erlanger will retain its name, local leadership, and governance structure while gaining representation on Prisma Health’s corporate board, and all employees and medical staff in good standing are expected to be retained. The Letter of Intent marks the beginning of the transaction process. The organizations will now begin due diligence and negotiate definitive agreements, subject to Board, oversight panel, county and regulatory approvals.
Juniper’s Role
Prisma Health engaged Juniper Advisory as its transaction advisor to support this strategic growth opportunity. Juniper advised Prisma Health through the strategic assessment process and continues to advise Prisma Health as the organizations advance through due diligence, various approvals and work towards finalization of a definitive agreement.
For more information, please contact:
Brent McDonald | 214.505.4961 | bmcdonald@juniperadvisory.com
Farley Reardon | 615.451.8608 | freardon@juniperadvisory.com
About Prisma Health
Recognized as one of “America’s Most Innovative Companies” by Fortune, Prisma Health is a private nonprofit health company with over 32,000 team members, 19 acute and specialty hospitals, 3,131 licensed beds, 320 practice sites, and more than 5,900 employed and independent clinicians across its clinically integrated inVio Health Network. Each year, Prisma Health serves more than 1.6 million patients in South Carolina and Tennessee.
About Erlanger Health System
Erlanger is a private, non-profit health system based in Chattanooga, Tenn., affiliated with the University of Tennessee Health Science Center College of Medicine. The seven-hospital system includes the region’s only Level I Trauma Center, children’s hospital, Level IV NICU, kidney transplant center, 24/7 stroke care, and many more essential services. Children’s Hospital at Erlanger provides the highest level of trauma, critical, and inpatient care. Erlanger is the sole provider of tertiary care services spanning a 50,000 square-mile region encompassing southeast Tennessee, northwest Georgia, north Alabama, and western North Carolina. The health system comprises seven hospitals and emergency departments, provides medical services for a fleet of six helicopters, and offers exceptional, comprehensive care at all of life’s stages. With a history of over a century, Erlanger continues its founding mission to compassionately care for people.
About Juniper Advisory
Juniper is a specialized investment banking firm focused exclusively on nonprofit hospital system mergers and acquisitions. The team is often regarded as the most experienced in the country advising health systems on business combination transactions over four decades.