Erlanger Health System reported net income from operations of $29.5 million for fiscal year 2016, down from $47.9 million the previous year.
The budget and finance committee of the hospital’s board of trustees also voted Tuesday evening to approve an annual bonus for 2016 of $400 each for some 3,500 employees.
And the budget committee approved spending $6.2 million for the hospital’s share of a new combined heat and power project that could reduce the main hospital’s electricity and heating bill by about $1.6 million annually.
As a nonprofit hospital, Erlanger does not report a profit or loss but rather net income, which can be applied to the hospital’s needs.
Net operating revenue for 2016 was $824.3 million, up from $713.3 million the previous year. However, expenses also rose, from $665.4 million in fiscal 2015 to $794.8 million in 2016. Erlanger chief financial officer Britt Tabor explained that the hospital had unusual extra expenses in 2016 for completion of the expanded Erlanger East hospital, and to install an expensive new computer system.