After a major loss the year before, Erlanger Health System finished the fiscal year with an $18 million profit, officials announced Monday night.
It was well ahead of the $2 million gain that Erlanger had budgeted for, and far better than last year's $8 million loss.
The profit was boosted by a first-time $19,587,000 from a Public Hospital Supplemental payment and essential access payments of $12,755,960 from the state - up from $10,614,900.
The annual trauma fund payment of $925,799 was down from last year's $1,099,164. Erlanger got $8,523,300 in disproportionate share payments last year, but none this year.
Kevin Spiegel, president and CEO, noted that to get to the bottom line the hospital first "had to negotiate through $20 million in cuts." He said the turnaround was "pretty spectacular."
He added, “I want to give kudos to the dedicated employees, managers, centers of excellence leaders and others who did all the heavy lifting to make this turnaround possible.”
Donnie Hutcherson, who presided over the board finance committee, called it "a textbook turnaround." He told staff, "You couldn't write a better story than what you've done."
For the year, admissions were 3.2 percent over budget and 4.4 percent greater than the prior year.
Britt Tabor, finance director, said the hospital added to its cash reserves. He said it depreciated $26 million in capital and added $13 million for a net gain.
The hospital board approved the $3.8 million purchase of a new 3.0 Tesla MRI system that will be placed in the Medical Mall for outpatient use.
Officials said Memorial and a private imaging center already have 3.0 Teslas, and Erlanger has been losing MRI business.
Mr. Spiegel said Erlanger's new PET scan, also in the Medical Mall, will go into service next week.
He said it is the most effective tool for cancer detection.
Erlanger got a "squeaky clean audit" from Pershing Yoakley & Associates.
The last month of Erlanger’s fiscal year, surgical inpatients were 1.5 percent over budget and 6.7 percent greater than the previous year. Surgical outpatients were 3.2 percent under budget, but four percent greater than the previous year.
Emergency room visits were 6.4 percent under budget, but 10 percent higher than the previous year. Helicopter patients were 9.5 percent over budget and 7.7 percent over the previous year.
Physician practice outpatient visits were .6 percent over budget and more than five percent higher than the previous year.
Neurosurgery inpatient surgeries were one percent under budget, but 3.2 percent greater than last year. Inpatient heart/thoracic surgeries with cabs and valves were under budget by 21.5 percent and 18.7 percent less than last year.
Net patient revenue less essential access per adjusted admissions was $7, 318 compared to a budgeted $7,812.
Bad debt and charity care as a percentage of gross revenue was slightly less than budgeted, at 10.22 percent versus 10.47 percent. Commercial utilization for the month was 7.2 percent under budget and 2.3 percent less than the previous year.
Cost per adjusted admission was $7,871 compared to a budgeted $8,307 and paid FTE’s per adjusted occupied bed was 5.13 compared to a budget of 5.40, however salary cost per hour was $28.15 compared to a budget of $27.30.
Supplies and drugs per adjusted admission was $1,555 compared to a budget of $1,529.