Erlanger Health System reported net income, including provider relief funds, for Fiscal Year 2021-2022 totaled $21.4 million compared to a budgeted net income of $20 million. Officials said the gain occurred during a period in which many hospitals across the country are facing losses.
The gain includes $11.4 million in one-time federal COVID funds.
For the fiscal year, Erlanger got $14.7 million in federal COVID funds and will carry over $3.3 million for the next fiscal year.
The pandemic continued to have a significant impact on operations in Fiscal Year 2022, however, Erlanger's net patient service revenue grew 5.9 percent over Fiscal Year 2021, it was stated.
The health system also reported net income from operations for the first quarter of Fiscal Year 2022-2023 of $6.99 million yielding a 2.3 percent operating margin. These first quarter results outperformed budget.
Erlanger President and CEO Jim Coleman said, “As Erlanger faced the same issues and pressures endemic to the health care industry, the Erlanger team continued to provide exceptional care while maintaining its discipline for operational performance. Erlanger continues to strengthen its financial position and the quality of care provided. This is a credit to leadership and operational execution by all members of the Erlanger team.”
Officials said, "The results of operations for Fiscal Year 2022 reflect the positive momentum that began in Fiscal Year 2020 and leading to Erlanger’s improved financial position. This performance was driven by the early implementation of the management action plan allowing Erlanger to sit at a better position financially at the onset of the pandemic thus allowing it to be more flexible in decisions. The execution of the robust plan includes expense reduction and revenue growth initiatives that generated significant realized value reflected in the June 30, 2022 financial statements.
"While Erlanger saw less admissions overall, the system served more complex high acuity patients from across the region, including adults and children. Throughout the year, the pandemic continued to pressure capacity and service availability as our associates continued to care for all patients. The system mitigated the impacts by adhering to its structured, tiered protocols with the overall goal to ensure patients receive the high level of care they needed in a safe manner. Erlanger’s Level 1 adult and pediatric trauma centers, commitment to research and its academic medical center affiliation with UT College of Medicine makes it a health care destination for the treatment of the most complex cases."
Lynn DeJaco, chief financial officer for Erlanger stated, “The past three years have been daunting to every healthcare organization, but Erlanger understood the importance of remaining fiscally responsible and financially secure in order to continue to serve our region. This team’s dedication has withstood the many persisting challenges of the past few years to continue to compassionately care for their patients.”