Erlanger to get second dose of federal funds

Erlanger Hospital is seen from the UTC library's balcony in this Dec. 9, 2014, file photo.
Erlanger Hospital is seen from the UTC library's balcony in this Dec. 9, 2014, file photo.

The Hamilton County Commission will vote next week to again help Erlanger Health System turn $10 million into $28 million by drawing cash from a federal pot.

And despite anger from state lawmakers in December over the hospital's board paying $1.7 million in bonuses for executives at the public health system, legislators say they aren't getting involved in the upcoming money swap.

Commissioners will vote on -- and likely pass -- a resolution this week that will allow the county to transfer $10 million of Erlanger's dollars to the state's TennCare program. This money move will allow Erlanger to draw $28 million from the Public Hospital Supplemental Payment Pool, a $100 million cache of federal funds aimed at helping public hospitals cover the cost of treating patients who can't pay.

"We are very appreciative of all the federal, state and local partners who were instrumental in Erlanger being included with other eligible public hospitals in the Public Hospital Supplemental Payment Pool," Erlanger spokeswoman Pat Charles said in a statement Friday.

"These funds partially support the uncompensated care Erlanger provides to our community, which is in excess of $85 million annually."

The county did a similar transfer in April 2014, putting in $10 million and getting back $30 million. The hospital finished that year with about $17.5 million in profit.

The second transfer is not likely to face any opposition from the County Commission. It doesn't cost the county a dime, and it infuses a ton of money into the local public hospital.

"I wish we could do this every week," Commissioner Joe Graham said last week. Graham leads the county's finance committee.

photo Mike Carter

State Rep. Mike Carter, R-Ooltewah, said the transfer isn't likely to get any pushback from state lawmakers either, even after the bonus-fueled anger.

"I have no desire to punish them now. Remember, Erlanger's mission is to provide quality care just like the other hospitals in the area," Carter said.

He added that the lawmakers were upset about the way the bonuses were granted, not the bonuses themselves.

The Erlanger board plans to re-do the controversial vote for bonuses, after an attorney general opinion concluded such decisions could not be made behind closed doors.

Carter said lawmakers will likely stay in their lanes, unless they think Erlanger is breaking laws.

"I want Erlanger to run Erlanger and me to run my business. I just want them to follow the law, just as I will," Carter said.

State Rep. Gerald McCormick, R-Chattanooga, also said the money transfer deal is up to the hospital's board.

"I think mostly I'm glad to see they are going to be reimbursed for taking care of people who can't take care of themselves. And I think that is the purpose of the money," McCormick said.

Contact staff writer Louie Brogdon at lbrogdon@timesfreepress.com, @glbrogdoniv on Twitter or at 423-757-6481.

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