Chief Financial Officer Britt Tabor reported Monday night that the Erlanger Health System posted a $1.4 million profit from operations in December. He noted that last December Erlanger posted a loss of more than $1.2 million from operations.
At the same time, Erlanger Chief Administrative Officer Gregg Gentry presented a plan to the Erlanger Board's finance committee for an amendment to the Hospital Authority Pension Retirement Plan and Trust to freeze the plan for all employees, effective June 21, 2014.
A second resolution was to approve a change to the Erlanger Associate Retirement (401(a) Savings Plan, providing a revised corporate matching plan for those employees affected by the amendment to the Hospital Authority Pension Retirement Plan and Trust. Both were approved by trustees.
Mr. Gentry said, "This is a plan freeze, not a plan termination. Accrued benefits through June 21, 2014 will not be reduced."
Officials said, "A separate communication with details will also be posted on Erlanger’s intranet site tomorrow, and additional information will be made available as we approach the 6/21/14 freeze date."
Six months into the fiscal year, Erlanger’s $1.5 million year-to-date loss from operations “is considerably less than our projected loss of $7.5 million at this point in the fiscal year,” Mr. Tabor told trustees.
He said, “Although we stand at a loss mid-way through our fiscal year, the Erlanger Health System is more than $6 million ahead of our budgeted projections at this point.”
Highlights of December’s budget report include:
- Admissions up by four percent and 5.6 percent higher than last December.
- Surgical inpatients 7.6 percent over budget and 17 percent higher than last December.
- Surgical outpatients 1.8 percent over budget, and more than 10 percent higher than last year.
- Orthopedic inpatient surgeries 17.6 percent over budget and 26.8 percent greater than prior year.
- Neurosurgery inpatient surgeries 1.4 percent over budget and 8.8 percent higher than last year.
- Inpatient heart/thoracic surgeries with cabs/valves 30 percent over budget and 39.3 percent greater than prior year.
- Cost per adjusted admission was $7,587 compared to a budgeted $8,301
- Paid FTE’s per adjusted occupied bed 4.91 compared to a budgeted 5.40
- Supplies and drugs per adjusted admission were slightly less than budgeted, at $1,535, compared to $1,540.
Mr. Tabor said there were a number of “surprising and unexpected factors” that prevented Erlanger from posting higher gains in December. “Our indigent/self pay utilization was almost 59 percent over budget and more than 20 percent higher than last December,” he noted. Also having a negative impact on December financials were ER visits which were down by 11 percent, physician practice visits, down by 39 percent and cardiac cath procedures, which were almost 14 percent under budget.
In addition, Erlanger provided more than $5.6 million in uncompensated care during the month of December, bringing the year-to-date total of uncompensated healthcare services of nearly $43 million to the community.