After months of mounting losses, Erlanger Health System reported a gain of almost $2.6 million for May.
Brent Tabor, finance director, said the turnaround was based on measures aimed at driving down costs combined with new steps taken to lure surgeries back to Erlanger.
Even with the May gains, Erlanger still is showing a loss of $15.2 million for the fiscal year to date.
Mr. Tabor said based on a 12-month average, it appears "the debt service coverage ration would not be in compliance (with bond covenants) at June 30, 2012.
" He said, "Operating improvements are being implemented to reverse the run rate."
At a meeting of the finance committee of the Hospital Authority on Monday night, Mr. Tabor presented a budget showing a $3.5 million profit for the upcoming fiscal year.
Mr. Tabor said the hospital is saving money following a new hiring policy of "not going to hire-up until patients show up." He said previously the hospital staffed up certain areas in anticipation of rising patient loads.
He said in addition to new arrangements made with Erlanger surgeons that surgical units at Erlanger East on Gunbarrel Road and Plaza Surgery units now owned by Erlanger are coming on line.
In another move aimed at keeping surgeons happy, the finance committee approved spending $735,349 for renovation of the GI lab.
The hospital's Continu Care division is showing a $210,000 gain. However, Southside and Dodson Avenue health centers and Erlanger Bledsoe are showing a loss of about $1 million each.
There was no mention made of raises. Officials said Administrator Charlsetta Woodard-Thompson would discuss those with the full board on Thursday night.
Officials said of the total Erlanger budget, only about three percent comes from outside sources, such as the county and state.