Erlanger begins planning capital projects after improved financial results

Chattanooga, Tenn.-based Erlanger Health System is planning $96 million in capital projects, according to a Chattanooga Times Free Press report.

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That includes the completion of the long-delayed expansion of Erlanger East Hospital and a new children’s hospital to upgrade the aging T.C. Thompson Children’s Hospital, according to the report.

The news comes amid the health system’s recent financial turnaround. Erlanger posted negative earnings 10 times in the past 15 years, but showing improvement, the system reported a $12.7 million profit for the second quarter of FY 2015.

With the financial turnaround, bond insurers agreed to waive the 2-year moratorium on issuing new bonds. When the health system went to the market with a nearly $150 million refunding and capital improvement issue in November 2014, the issue sold out in less than 45 minutes, according to the report. 

 

More articles on healthcare finance:

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West Penn Allegheny Health System narrows losses in 2014

 

 

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