The Erlanger Health Center Board of Trustees on Thursday night approved $2.1 million in management bonuses after the public hospital had its "best year ever."
The highest amount went to CEO Kevin Spiegel, who led the $60 million turnaround. His bonus was just under $245,000.
The remainder goes to 123 other top Erlanger officials and managers.
At the same time, the board approved paying $400 each to other hospital employees for their role in the resurgence. That will go out in the Oct. 2 payments.
Several trustees said they would like to see Erlanger begin to move toward some type of incentive plan for employees - rather than just giving equal lump sum bonuses to all.
Trustee Gerald Webb said the employee bonuses "might not sound like a lot of money, but you can bet it means a lot to them."
An official of the SullivanCotter consultant firm said the most in management bonuses that could have been earned was $3.4 million.
It was rated 40 percent on financial performance and 60 percent on quality. The hospital reached the top on finances with a profit of $40.2 million - before the incentives. However, all the quality marks were not attained. Erlanger is currently beefing up its quality control department.
Next year the management bonuses will be shared by 152 persons. Officials said that is due to Erlanger's growth and addition of new positions.
The ratio will be 45 percent financial and 55 percent quality next year. The quality side will include a focus on employee hand washing and on encouraging patients to get flu shots.
Trustee Jennifer Stanley said, despite a new focus on quality care, Erlanger needs to keep paying close attention to the financial side. It was noted that the hospital faces paying for a new $100 million Epic medical records system along with a number of capital projects aimed at keeping equipment and medical areas state of the art.
There is also the challenge of a switch Oct. 1 to a new billing system required by the federal government.
Because of a fear that might bring a delay in bill payments, Erlanger is taking out a $24 million line of credit with First Tennessee Bank.