Erlanger Health System plans to spend $8.7 million on a new surgical tray solution.
Officials noted that surgical services is a key service line for Erlanger, posting record volumes for the past three years.
Certain surgical procedures now require as many as 20 trays.
The Central Sterile Department was built in 1993 to support 22 operating rooms. The campus since then has expanded the operating space by 10 times and also expanded physician offices and emergency services.
Officials said the Central Sterile Department "is in need of additional capacity, designed in a modern footprint, to support surgical tray volume now and into the future."
Erlanger is entering into a 15-year contract with STERIS/IMS for central sterile operations at a minimum annual cost of $8,744,950.
The firm will set up a new site near the Erlanger campus as part of the operation. There will continue to be an on-site location.
Erlanger's current annual expense for the department is $4.7 million.