Erlanger's Q3 earnings set back from Epic rollout

Chattanooga, Tenn.-based Erlanger Health System fell short of its budgeted earnings in the third quarter following the system's Epic implementation, according to the Times Free Press.

On April 23, Erlanger CFO Britt Tabor told the system board's budget and finance committee Erlanger ended the third quarter with net income from operations of approximately $4.05 million, which was below the system's budgeted income of $8.27 million, according to the report.

Mr. Tabor told the committee the Epic implementation "was a huge impact, and that was not unexpected." Erlanger announced the Epic project, expected to cost about $100 million over 10 years, in 2015.

Erlanger implemented Epic for inpatient services in October 2017, but billing was delayed throughout the next month as issues were worked out, according to the report. This delay resulted in slowed payments and increased net days in accounts receivable. The system's net days in accounts receivable increased from 63 in September 2017 to 71 in March 2018, reports the Times Free Press. This occurred as Erlanger worked to ensure correct bills.

Mr. Tabor said he is pleased with the third-quarter results overall, noting he expects to see improvement in the fourth quarter and still meet the annual budget, according to the report.

Ayla Ellison contributed to this report.


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