By Healthcare Facilities Today

Erlanger Health System in Chatanooga, Tenn., is one step closer to outsourcing all of its food and housekeeping services, according to an article on the Times Free Press website.

The hospital board approved a $12.5 million contract with Aramark Healthcare Support Services to handle all such facility services, meaning 250 Erlanger employees could be moved off of Erlanger's payroll.

Hospital officials have said all housekeeping and food service employees will keep their jobs under the new contract. Aramark also plans to hire additional employees, hospital officials said in the article.

The shift is expected to save the hospital about $3 million in both material and personnel costs, officials said, and will bring roughly $10.5 million in capital improvements, like an overhaul of the kitchen.

Read the article.