Erlanger Medical Center officials said they are examining all aspects of the operation to try to find budget savings in light of recent losses.

CEO Jim Brexler said, "Everything is being evaluated in a pretty significant way."

For the upcoming budget, Erlanger has cut $1.1 million in agency (contracted workers) costs and $4 million in employee salaries.

Chief Operating Officer Charlesetta Woodard-Thompson said department heads are being used to use existing stocks rather than make new purchasing and stockpiling.

She said $9 million from deleted or deferred in capital items.

She said the hospital is also seeking to find ways to increase revenue. Hospitalists and anesthesiology were added at Erlanger North. At Erlanger East, seven postpartum beds are being added and there are increased orthopedic surgeries. A nurse practitioner was hired for urgent care.

At Children's Hospital, physicians added include a pediatric nephrologist, a pediatric endocrinologist and a pediatric cardiologist. A pediatric orphopedist is being recruited.

The hospital deleted an executive vice president position at $119,520.

Hiring of several others managers was deleted or delayed.

For March, the hospital had a $1.4 million gain compared to a budgeted $1.3 million. It included a $648,000 unrealized gain from a market swap and a $500,000 essential acccess payment.

Admissions were 11 percent below budget, but outpatient numbers were 8.4 percent over budget and outpatient surgeries 6.5 percent over budget.

The hospital is projecting a budgeted inpatient volume of 28,957 admissions for fiscal year 2005-2006, which is a 5.06 percent (or 1,394 admissions) increase over annualized.

Officials said market data for the 13-county service area indicate a projected growth of approximately 2 percent for calendar 2004. The Chattanooga market between 2000 and 2002 grew an average of 5.21 percent, which was slightly higher than the national trend of 3 percent.

The growth rate for 2003 was 2.37 percent and 2004 appears to be between 1.5 percent and 2 percent.

Births are projected to increase 7.17 percent, and Children's Hospital admissions are projected to rise by 6.76 percent. Children's is adding three pediatric physicians.

Erlanger East admissions are projected to go up by 2.44 percent, and Erlanger North to grow by 456 admissions based on the establishment of a hospitalist program.

Officials said helicopter flights are projected to decrease due to increasing competition from helicopter services. Still, the hospital is considering buying a third helicopter costing $1.5 million.

Emergency room visits are projected to rise by 6 percent.

Erlanger officials said they studied $56 million in capital requests, and came up with a list of $24.2 million.

The hospital also has $8,680,000 in principal payment on bonds, $361,797 in capital lease payments for the Sports Barn/Lifestyle Center and $76,790 in payments for the Family Practice Center.

Capital items include the new helicopter, $4.3 million for two new operating rooms, $1.7 million for a replacement operating room, and $1.3 million for renovation of vacant space.