TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Excela's operating loss $2.8M in quarter

Wednesday, Nov. 21, 2012, 11:32 p.m.
 

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 anixon@tribweb.com.

Add Alex Nixon to your Google+ circles.

 

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Finleyville maker of luxury kids’ structures learns from housing bust
  2. Treasury plans steps to curb tax inversions
  3. Sears leaving Century III after 3 decades in West Mifflin
  4. Existing home sales fall in August, snapping streak of gains
  5. Coal gathering opens with dour assessment, political vitriol
  6. Balancing gas pipeline expansion, environmental unease a problem in Pa.
  7. Stocks slip on China growth jitters
  8. More companies embrace exchanges to curb health care costs
  9. Hospitals turn to technology to tear down language barriers with patients
  10. Retailers begin efforts early to woo holiday shoppers
  11. Symposiums to spotlight Pittsburgh’s role as an energy powerhouse
Subscribe today! Click here for our subscription offers.