Erlanger Health System officials announced Thursday that the hospital is redirecting $13 million in previously budgeted funds to boost salaries of nurses.
The pay hikes, which go into effect on Feb. 5, include both RNs and LPNs, Chief Nursing Executive Rachel Harris said.
She said long-term nurses will also benefit with the cap extended "to those who have been with us for 30 or 40 years."
Ms. Harris said, "With this investment, we anticipate increasing employee retention and expediting recruiting, leading to our ability to more effectively balance capacity with the healthcare needs of our region.
"This will support Erlanger's vision of building a sustainable healthcare system that will stand the test of time as a mission-based organization."
Ms. Harris said it is hoped that the higher pay will lure back some of the senior nurses that Erlanger has lost over the past several years.
She said Erlanger, like other hospitals, had struggled with keeping nurses. However, the hospital recently has been able to drop to only a 15 percent turnover rate.
Sheila Boyington, board of trustees chair, said, "The action of the board this evening solidifies Erlanger's commitment to our employees and our community, both short and long term. With this action, Erlanger is again leading with the future in mind."
Jim Coleman, president and CEO, said, "We are pleased that we can make this salary adjustment for nurses and are committed to continuously reviewing how we can most effectively meet the overall needs of our workforce."