Excela's operating loss $2.8M in quarter
Excela Health swung to a loss on its operations in the July-September quarter as patient volume at its three Westmoreland County hospitals declined.
Greensburg-based Excela reported a $2.8 million loss from operations, compared with $340,000 in operating income in the same three-month period last year.
Hospital admissions and observations fell 5 percent to 8,294, down from 8,737 the year before.
“Soft volume is part of the continuing downward trend in inpatient admissions that all Western Pennsylvania hospitals are experiencing,” said Tim Loch, Excela's incoming chief financial officer. Loch will take over for retiring CFO Jeff Curry in February.
In the last five years, admissions have dropped in Western Pennsylvania by at least 2 percent a year, according to the Pennsylvania Health Care Cost Containment Council. There were an estimated 493,000 admissions for the year ended June 30, down from 543,082 in 2008.
Excela's net income for the quarter, which includes investment income and other non-operating gains, was $4.6 million, compared with a net loss of $10.2 million in the same quarter last year.
The system, which owns hospitals in Greensburg, Latrobe and Mt. Pleasant, reported total operating revenue of $115.0 million in the period, down from $116.0 million the year before. Operating expenses rose 1.8 percent to $117.8 million.
“Although that represents just a small part of what we do to care for the community, Excela Health has done an excellent job at effectively managing expenses and meeting patient needs beyond the hospital setting,” Loch said.
In addition to owning hospitals, Excela employs 120 physicians in Westmoreland County, runs a medical equipment supply company and operates a large and expanding outpatient services center.
Excela is adding more outpatient services at its Excela Square at Norwin facility in North Huntingdon to increase patient volume in the system and make care more convenient and less costly for patients.
It also plans to replicate the outpatient centers in Unity and Hempfield in coming years, officials have said.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or firstname.lastname@example.org.
Add Alex Nixon to your Google+ circles.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Stocks slide in busy week of quarterly earnings reports
- Hog Father’s eatery chain ferries barbecue to workers at gas well pads
- Mylan rejects Teva’s $40 billion takeover bid
- Oil’s rebound pushes up price at gas pumps
- Experts: If health insurers’ safeguard goes broke, consumers could pay
- Nike, Under Armour invest in watching exercisers’ steps
- Visa limits vex businesses
- MedExpress bought by United Health Group
- Retailers vie for workers in tightening labor market
- Rules could kick door open for nuclear power
- Low average of jobless claims points to hiring rebound