Erlanger Health System's publicly appointed board on Thursday more than doubled the amount of money hospital management can spend without oversight or supervision.
Previously, trustees were required to approve any hospital expenditure more than $100,000. That requirement was passed in 1998, records show.
An updated version, unanimously approved at Thursday evening's board meeting, raises the threshold to $250,000.
The resolution comprised part of the meeting's "consent calendar," which enables the board quickly to pass what it considers routine business under one consolidated vote.
There was no debate before the vote.
Appointed by elected Hamilton County and Chattanooga leaders, trustees historically approve contracts related to the publicly funded hospital's equipment, consulting and capital projects, some of which cost millions of dollars.
Board Chairman Dan Quarles, who said he spent two months writing the resolution, defended "loosening up" requirements on management. He said Erlanger attorney Dale Hetzler discovered similar expense levels at other hospitals.
"You're talking about 1998 dollars and you're talking about 2011 dollars," Quarles said, adding that trustees could ask management to produce a quarterly report of contracts or agreements that fell below $250,000.
The resolution passed moments after trustee and Audit Committee Chairman Russell King announced his intent to obtain documents regarding the hospital's auditing practices, seeking to review "large amounts of contracts that were not board-approved."
After the meeting, Quarles, who does not vote as board chairman, would not say whether he agreed or disagreed with what King wants to do.
In other business, Erlanger passed their budget for the next fiscal year. Chief Financial Officer Britt Tabor forecasted a $12.5 million profit.
Hospital management predicted a $14.5 million profit for the present fiscal year, which concludes at the end of June. Financial documents released Monday show a $400,000 profit.