Erlanger Health System officials said they anticipate income of $29.4 million from operations for the upcoming fiscal year.
The projection includes a 10.3 percent increase in outpatient surgeries, 11.9 percent increase in inpatient charges, and nine percent increase in net patient revenues.
Officials said bedside nurses will receive another raise in July as part of the $5.4 million allocated for July 2014 and July 2015 raises. Associates, other than bedside nurses, will receive three percent salary increases in January 2016, pending board approval of the new fiscal year budget.
Erlanger’s President and CEO Kevin Spiegel said that the FY2015/2016 budget is "a stretch budget with a lot of potential headwinds."
The proposed capital budget for fiscal 2015/2016 represents nearly $30 million in investments, in addition to the $50 million capital funds already allocated for the expansion of Erlanger East Hospital, $9.5 million for the orthopedic surgical suite and $11.5 million for the new ambulatory care center and several other capital projects.
Erlanger CAO is switching from MetLife to Prudential Retirement by Oct. 1 for the employee saving plans, the 403(b) and 401(a) plans.
Gregg Gentry, Erlanger CAO, said, “The saving plan’s benefits will remain the same, but Prudential Retirement will provide additional features, enhanced service and a new set of investment funds.”
Erlanger plans to fund the Pension Fund $1 million during fiscal year 2015 and $2 million during fiscal year 2016. This is in addition to the $16 million that will be contributed to the savings plan on behalf of associates during these fiscal years. Prudential Retirement will also become the Trustee of the pension plan.
“This means that Prudential will generate retirement checks and be the trustee for the pension plan trust fund,” Mr. Gentry said.