The Erlanger Health System has projected an unprecedented $1.1 billion in net revenue for the upcoming fiscal year.
“This is the first time in Erlanger’s history our net revenue is expected to exceed $1 billion,” Britt Tabor, chief financial officer, told trustees.
Erlanger’s 2019 budget continues to be growth-oriented with focused cost management, he said.
Tabor also said that Erlanger’s market growth remains in the top quartile of all hospitals nationwide. He stated, “We have achieved a continued top line growth of 51% over the past five years. With six hospitals now in our health system, we plan to continue targeted growth that aligns with our strategic plan.”.
He said, “We were very intentional in making continued investments in the health of this community with $27 million in capital committed to a strategic list of imperative items.”
In addition to adding more beds at the downtown campus, more than $5.4 million has been budgeted for cancer treatment services at the Erlanger East Hospital campus, including a state-of-the-art linear accelerator in the new comprehensive cancer center opening on Gunbarrel Road this fall.
Next year’s budget bottom line, at $15.5 million, is more than three times the $5 million bottom line budgeted for fiscal 2018. Erlanger’s 2019 budget projections are based on a full year’s operation of the newly-opened Heart and Lung Institute, the Erlanger Behavioral Health Center, scheduled to open next month, and the December opening of the new Children’s Outpatient Treatment Center.
Mr. Tabor said, “We anticipate an 11 percent growth in admissions, including the new Behavioral Health Hospital, which is also unprecedented in a flat market,” Tabor said.
Surgical procedures at Erlanger next fiscal year are expected to grow at an all-time high of 38,000 procedures, representing another unprecedented seven percent growth in this service area.
In addition to its continued investments in the community, next year’s budget also includes $5.2 million earmarked for Erlanger employees. Mr. Tabor said, “While other hospitals are closing their doors or cutting their workforces, Erlanger has invested more than $20 million in its associates over the past three years and this budget year is no exception.”
He said next year’s budget is clearly a challenging one, but "Erlanger’s management team has a proven track record of exceeding budget projections. The fact we are recognized for executing on our tactics is even more impressive since we project providing more than $120 million in uncompensated care in 2019.”
The Board of Trustees will formally vote on the FY 2019 budget at the June 28 board meeting.