Erlanger Health System reported substantial growth in revenue and effective cost management for the third quarter. Net income from operations of $8.5 million exceeded prior year by $7 million and also exceeded budget by $1.3 million.
The health system had an 8.8 percent increase in total net revenue. Officials said the quarter generated strong EBITDA (earnings before interest, tax, depreciation and amortization) of $34.8 million to fund the capital projects associated with the strategic plan and debt service.
Erlanger experienced a dramatic 12.4 percent growth in admissions. The execution of the new Heart and Lung Institute showed 61 percent growth in heart surgeries from previous year. Orthopedic inpatient surgeries were 19.4 percent greater than last year, neurosurgery inpatient surgeries 5.6 percent greater than last year, and emergency room admits were 10.3 percent greater than last year. Erlanger East Hospital exceeded all expectations.
Erlanger Health System President and CEO Kevin M.
Spiegel said,“Third quarter financial results for Erlanger Health System are unprecedented.”
“East nearly tripled prior year volumes,” said Britt Tabor, chief financial officer.
“Overall, it was a very strong quarter for inpatient volumes for the entire health system,” he added.
Erlanger had a lower-than-budgeted cost per admission. This decreased cost was managed through productivity gains, supply and drug management and overall standardization.
In the first nine months of the fiscal year, Erlanger has provided $78 million in uncompensated care to the residents of the community.