Losses narrow at WPAHS under Highmark ownership
Financial losses at West Penn Allegheny Health System are getting smaller as the Highmark Inc.-owned system makes progress on a turnaround plan.
The five-hospital system, which forms the core of Highmark's Allegheny Health Network, reported a net loss of $12.5 million in the January-March quarter. The result was significantly improved from the net loss of $34.6 million the system posted for the same period a year ago.
“Although much work remains to be done as our comprehensive turnaround plan for WPAHS is fully implemented, the success of those efforts to date should be reassuring,” spokesman Dan Laurent said on Thursday.
The loss reduction was helped by a boost in revenue to $402.6 million in the quarter, up 6.5 percent from $378 million a year earlier.
Revenue was higher because of increases in reimbursement rates negotiated with insurers and better productivity from workers.
Expenses rose modestly to $417.8 million, from $415.7 million. The network has been laying off workers over the last year since Highmark, the state's largest health insurer, acquired it in April 2013.
The system's loss from operations, which doesn't include gains from investments, narrowed to $15.1 million, down from $37.7 million a year earlier.
The results “further demonstrate the significant progress being made by Allegheny Health Network in its efforts to strengthen the operational performance of the WPAHS hospitals and position them for long-term success,” Laurent said.
In the past week, the system has released revised financial statements for two periods that showed much larger losses than previously reported. Losses ballooned to more than $370 million in the fiscal year ended June 30 because of an accounting change that resulted in a non-cash charge. It updated a report for the six-month period ended Dec. 31, showing a loss of $81.5 million, also from an accounting change.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or email@example.com.
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.
- W.V. entrepreneurs offer hope as coal fades as economic engine
- Demand for surveillance systems boosts sales for Vector Security
- Cyber Monday increasingly a ‘blah-iday’ as deals rolled out earlier, longer
- Pennsylvania Game Commission reaps revenue from shale gas under game lands
- Distractions can help keep riders alert in self-driving cars, study finds
- Fed slashes its emergency power options in crisis
- Stocks dip on lower holiday spending fears
- IMF adds China’s yuan to basket of top currencies
- University of Pittsburgh researchers revisit war of electric currents
- Coke had hand in shaping nonprofit health group, emails show
- Stop neighbors from stealing your Internet