The number of nonclinical managers at Erlanger Health System has dropped from 290 to 93 since the health system's CEO was directed by board members in fall 2019 to reorganize management, according to the Chattanooga Times Free Press.
William Jackson, MD, took over as CEO of the Chattanooga, Tenn.-based health system in September 2019. In October of the same year, Erlanger began reorganizing by cutting and restructuring about 30 management positions. In the roughly 14 months since, the system's number of nonclinical managers has fallen by nearly 200.
Most of those roles have been restructured and reassigned rather than eliminated, an Erlanger spokesperson told Becker's Hospital Review Dec. 23. The system does not have plans to change its new management structure, the spokesperson said.
At the time of the first October 2019 management changes, Dr. Jackson told the Free Press the reorganization "is not going to be in vain." He said the system will "use this to become streamlined and lean, and we're going to make the organization better over time."
Erlanger 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 health system has also given two rounds of raises to staff since February.