You Decide–Is Erlanger’s $1 million sponsorship of The Lookouts Clever or Not So Smart

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A rendering of the new Chattanooga Lookouts stadium, which is expected to be named Erlanger Park as part of a $1 million annual sponsorship deal with Erlanger Medical Center. The naming rights have sparked public discussion regarding the independent nonprofit hospital’s financial investment and its ongoing mission as a safety-net provider for the community.

Whew, there’s lots of talk regarding Erlanger Medical Center’s banner sponsorship of the Lookouts new stadium under construction. For $1 million annually, the new stadium will be named Erlanger Park.

Weighing in with varying opinions have been Hamilton County Mayor Weston Wamp, Chattanooga Mayor Tim Kelly, the Chattanooga Lookouts, and the public relations company handling the press and likely some of the negotiations between decision-makers in this pricey marketing move. Public opinion forming with greatest efforts now are seeming to sell the community on the significant financial investment by Erlanger Medical Center.

Let’s look at some facts you need to evaluate that will permit you to decide: Is the Erlanger $1 million sponsorship of the Lookouts stadium clever or not so smart?

The status of Erlanger Hospital changed in 2023, after local efforts were successful ending Erlanger Medical Center’s organization and operations as a public nonprofit that was first beholden to the public. Like a school, Erlanger received funding from public or government sources with the requirement of open, transparent meetings. Now, Erlanger Medical Center is an independent nonprofit organization operating with covenants governing its function with private meetings, negotiations, and transactions like other competing health systems and other health entities.

As part of these covenants of the newly structured Erlanger approved by the County Commission, the intent was clear from the local and state governments that “the historic mission of Erlanger as a teaching hospital, regional referral center, and safety-net provider for Hamilton County” would continue. This included the understood role in delivering “charity care remaining consistent with Erlanger’s historical policies.”

Put simply, whether public or private, as a nonprofit hospital, Erlanger was to continue to serve as the area’s safety net providing care that didn’t discriminate on one’s ability to pay or the robustness of one’s insurance coverage. These intentions were part of the 2023 deal in addition to the medical center’s ability to compete and grow in an important healthcare market.

The hospital, founded in 1889, has served as the area’s public hospital, once supported by both county and city government funding, but as recently as 2023, the recipient of $1.5 million in county government tax dollars.

The Lookouts Stadium is projected to be ready by Spring 2026 and serve as the anchor facility for the 400+ acre development of retail that is estimated to generate over $1 billion in revenue through development, jobs, and consumer spending.

The focus of public sparring is whether Erlanger Medical Center should spend $1 million to see its name everywhere at the Lookouts Stadium, just as AT&T has had at Hawk Hill. Marketing and branding show community presence and support, but also establishes a front-of-mind name to steer consumers to the sponsor’s facility. There are benefits.

Whether the million-dollar investment results in good patient care by the best faculty and staff is not the immediate question here. It’s clear the Lookouts’ development wins. Still, the public opinion on patient care and excellence will determine whether this was clever or not so smart.

Editor’s Note:  The CNC welcomes your opinions at newschronicleinc@gmail.com