Erlanger Board approves fiscal year 2022 capital budget

Chattanooga, Tenn. – The Erlanger Board of Trustees has approved the fiscal year 2022 operating budget, which forecasts a net income of $20 million and a capital budget expenditure of $37 million.

Over the past 15 months during a pandemic, Erlanger associates have worked diligently to accomplish the health system’s goals while continuing to provide high-quality, compassionate care. These positive projections are possible because of the shared sacrifice of the team, recent stellar execution, and the established mission of commitment to this community. 

“As the area’s essential health system, we know it is important to do everything we can to build a strong sustainable future for Erlanger as we continue to provide care to our community,” said Dr. William Jackson, President and CEO of Erlanger. “We are excited to work toward furthering our goals to invest in our people, provide quality, safety and service excellence to our patients, and be financial stewards in an environment of increasing healthcare costs.”

Thoughtfully developed statistical projections presented for fiscal year 2022 were finalized after discussions with senior leadership, staff, clinicians, and physicians in various disciplines. One specific variable considered was the consumer response to reengaging with the healthcare system as the COVID-19 pandemic subsides, a significant but unpredictable variable.

This commitment to the future is underscored with the largest capital budget in recent years, $37 million. The capital budget will be allocated to upgrade facilities, purchase new equipment, and enhance Erlanger’s information technology. The budget encompasses the three tenets of Erlanger leadership’s vision, including continuing to invest in the staff and increasing access to care in the region.

Dr. Jackson stated, “We understand that our people are the best asset we have at Erlanger, and they are what makes the difference. In honoring their tireless commitment to the community, we are determined to invest in capital items that are important to them, and aid them in delivering the superb care they provide every day.”

The proposed budget projects a $20 million net income, particularly aspirational when viewed in context of Erlanger’s mission and the industry as a whole. Focused leadership in primary care, outpatient services and strategic growth will aid in accomplishing the goal.

“These very positive financial projections are a testament of the care and service provided by the entire Erlanger team,” said Jim Coleman, chair of the Budget and Finance Committee of the Erlanger Board of Trustees. “The recent success of Erlanger proves its leadership, associates, and physicians are committed to caring for patients in our region, and we look forward to an even stronger 2022.”