The finance committee of the Erlanger Health Center board on Monday approved the takeover of a hospital in Murphy, N.C.
The measure involving Murphy Medical Center goes before the full board on Thursday night.
Hospital officials said the Murphy facility with eight physicians and some 400 employees is current at a break-even status.
Erlanger President Kevin Spiegel said Erlanger will supply a number of specialists that will allow Murphy residents to be treated in their home community.
He said the additional physicians, along with efficiencies Erlanger enjoys, should allow the hospital to move to a $5 million profit.
Erlanger is not making any cash payment toward the takeover, but is becoming the operating member at the facility currently operated by a Charlotte, N.C., hospital management firm.
The employees will become Erlanger employees with all the benefits they enjoy, it was stated.
The EPIC electronic medical records system that was just implemented at Erlanger campuses will be extended to the Murphy facility.
Mr. Spiegel said Murphy is separated by mountains from the rest of North Carolina and actually has closer ties to Chattanooga and Tennessee than its home state.
He said Erlanger hired an outside firm to evaluate the move. In addition, he said the Erlanger top management "carried out our own diligence," including trips to Murphy, Raleigh and Charlotte and extensive questioning of the current operators.