Managers at Erlanger Health System will have to turn a bigger profit to earn bonuses next year, if trustees approve proposed new standards.
Erlanger trustees will vote later this month on a resolution containing more rigorous requirements for management staff and executives to get incentive payments, including a minimum operating profit of $12 million effective for fiscal year 2011, which ends next summer.
“It’s a stretch,” said Kim White, chairwoman of the management and board evaluation committee, which developed and unanimously approved the new standards last month.
Erlanger reported an operating profit of $8.58 million for fiscal year 2010, which ended June 30, and $10.8 million the previous year.
Hospital executives also have informed trustees that management will receive bonuses this year based on meeting criteria pre-established for 2010. The exact amounts still are being calculated, Erlanger spokeswoman Pat Charles said.