Erlanger Health System ended fiscal year 2020 with a $30.2 million net income thanks to $55.9 million in COVID-19 aid, according to recently released financial documents. This compares to a net loss of $4.4 million in fiscal year 2019.
The Chattanooga, Tenn.-based system saw its operating revenue increase less than 1 percent to $1.1 billion in the year ended June 30, compared to the same period last year.
Its expenses decreased in fiscal 2020, from about $1.1 billion in fiscal 2019 to $1 billion in fiscal 2020.
Overall, Erlanger ended fiscal 2020 with an operating income of $35.3 million, compared to an operating loss of $4 million in fiscal 2019.
Erlanger estimated that the COVID-19 pandemic resulted in lost revenue of about $93 million from March to June of this year. To help offset the financial hit, Erlanger implemented a cost containment plan that included furloughs and deferred capital projects.
“I am extremely proud of the efforts and devotion of the entire organization,” William Jackson, MD, president and CEO of Erlanger. “By any objective standard, the results of the past 12 months are simply extraordinary. Erlanger is an essential civic asset for Chattanooga and the region, and our associates took this to heart, sacrificing personally, and often at risk of their own health, to ensure the sustainability of the enterprise for their family, friends and neighbors. While uncertainty around the economy and pandemic remains, we have done everything possible to continue the mission, and I am grateful for the faithfulness of our staff.”
The health system also reported at a budget meeting Oct. 19 that its operating income from the first quarter of fiscal year 2021 was $12.6 million.
More articles on healthcare finance:
New Hampshire health system files for bankruptcy
Public hospitals will add financial strain to urban counties amid pandemic, Moody’s says
COVID-19 patient faces $52K surprise medical bill after helicopter transfer
© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.