Despite a drop in patient volumes associated with lingering concerns over COVID-19, Erlanger Health System officials are projecting $24.1 million income from operations over expenses for the upcoming budget.
The projected operating margin is 2.1 percent.
However, the hospital is seeing rising debt associated with a planned $75 million loan from First Horizon Bank for certain capital expenditures.
The debt will increase up to $75 million from $173,810,602 to $248,810,602.
The capital budget request listed in the budget is for $41 million.
The budget for 2022/2023 foresees net patient revenue of $1,140,223,269 - up from $1,097,991,318.
Projected excess revenue over expenses is $16.4 million.
The "other operating revenue" line in the budget for 2020/2021 was at $60,218,810 at a time when substantial federal COVID funds were being received. That line dropped to $33,991,377 in 2021/2022 and it is put at $26,700,521 for the new budget.
Salaries and benefits rose from $570 million in 2020/2021 to $591.7 in 2021/2022. They are projected for a steep rise to $642,075,935 in the upcoming budget.
The hospital has had a $50 million line of credit with First Horizon and has not had to draw on it. That will be taken down to a $25 million line of credit.
The budget was presented at a meeting of the Hospital Board's Finance Committee.
It was the first board session in which former CEO Will Jackson was absent. Hospital officials announced recently they were parting ways with Dr. Jackson.