Erlanger in Tennessee Sets Forth Labor Management Plan

Officials at Erlanger Health System in Chattanooga, Tenn., have outlined a labor management plan in efforts to control costs, according to a Times Free Press report.

The labor management agreement, which was emailed to managers, would require full-time employees to use 12 days of paid vacation before March. Erlanger would have lower labor expenses once employees' paid vacation is used up. This measure alone is expected to save the organization approximately $1.4 million by July.

Other measures under the labor management plan include elimination of premium overtime hours for some departments and a voluntary buyout program. The plan may also call for layoffs. The cost-cutting measures in the plan would be implemented over the next three months.

According to the report, Erlanger Health lost more than $6 million over the past five months.

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