Chattanooga, Tenn. – During the January Board Budget and Finance Committee meeting, Erlanger Health System reported FY 2022 year-to-date net income from operations of $19.8 million compared to a budget of $17.1 million. Erlanger also reported $11.5 million net income from operations for the second quarter, a 4.13% operating margin. These second quarter results outperformed the prior quarter and budget even as Erlanger continues to experience high COVID volumes.
”The second quarter results continue to reflect Erlanger’s improved financial position even as our team faces challenges related to COVID,” said Lynn DeJaco, Chief Financial Officer for Erlanger. “Nationwide, hospitals experienced growing COVID admissions and depressed margins month over month during the quarter. However, Erlanger’s entire clinical team and leadership continues to rise to the occasion with excellence to deliver strong financial results. Erlanger strives to maintain fiscal responsibility and financial security while compassionately caring for our patients.”
Inpatient and outpatient volumes were less than expected for the second quarter. However, inpatient volumes for heart, orthopedic and neurosurgery showed improvement by exceeding the prior quarter totals. A positive margin for the quarter was achieved with effective management around key performance indicators.
Erlanger Trustee Warren McEwen said, “The Erlanger team has persevered throughout the pandemic and remains committed to optimal financial performance and liquidity. Net operating income of nearly $20 million fiscal year to date exceeded budget and prior year demonstrates this commitment. The entire Erlanger team deserves credit for continued outstanding patient care and strong financial results.”