Erlanger Health System finished the second quarter of the 2022 fiscal year, which runs from Oct. 1 through Dec. 31, with $11.5 million net income from operations despite a COVID-19 surge and ongoing workforce challenges, according to Erlanger’s latest quarterly disclosure report released Monday.
During a board of trustees budget and finance committee meeting Monday, Erlanger Chief Financial Officer Lynn DeJaco said that although the pandemic continues to exacerbate labor shortages and supply chain issues, which drives up costs, “strong discipline” around expense management has once again allowed the public health system to post positive earnings.
Since the start of the fiscal year in July through November, DeJaco said management added another $4 million worth of initiatives to its expense management plan that began after CEO Will Jackson took over in fall 2019.
“The largest percentage of those are in the purchased service area with our contracts – we have a strong contracts committee review – and so we’re managing those portions of our expense profile very tightly,” she said.
Year-to-date, Erlanger’s net income from operations was $19.8 million compared to a budget of $17.1 million, according to the report.