WASHINGTON: Fueled by patient volume growth, Erlanger Health System officials expect the Chattanooga, Tenn.-based system’s revenues to surpass $1 billion by 2019, according to the Times Free Press.
During a budget proposal presented to trustees Monday, Erlanger officials said they project the system’s revenues will climb 51 percent between 2014 and 2018. In the fiscal year beginning July 1, the system expects to record revenues of $976.6 million. That amount is projected to grow to more than $1 billion by 2019, according to the report. “This is organic growth, not through mergers or acquisitions,” Senior Vice President and CFO Britt Tabor said at Monday’s budget meeting, according to the Times Free Press. He said the system’s growth is allowing it to make more investments in key areas, including in new technology and quality improvements. Although Erlanger expects to hit record revenues in coming years, it will require the system to navigate several challenges. Mr. Tabor said the system’s uncompensated care costs are projected to climb from $103 million this year to $110 million in fiscal year 2018 and its Medicare reimbursement is expected to decline by $3.9 million, according to the report.
