TribLIVE

| Business


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

Highmark Health's first-ever combined report reveals $126M loss

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Monday, June 2, 2014, 9:45 a.m.
 

Highmark Health reported a net loss of $126.5 million in 2013, noting that negative results from its hospitals took a bite out of the integrated health system's bottom line.

Highmark Health, the parent organization of health insurer Highmark Inc. and hospital system Allegheny Health Network, said in an audited financial report released Monday that it produced a loss from operations of $186.3 million, primarily from a one-time charge of $311 million related to acquiring West Penn Allegheny Health System.

Revenue was $15.8 billion, placing the organization among the nation's largest health care systems that include a health insurer and hospital system. UPMC, which offers health insurance and medical services, had revenue last year of $10.2 billion.

The first combined financial report included results from the calendar year for Highmark Inc., the state's largest health insurer, and a partial year for the Allegheny Health Network hospitals,which previously were on fiscal years running from July to June.

It did not include prior-year comparisons because Allegheny Health Network, Pittsburgh second-largest hospital system, was formed last year.

“Highmark Health has a strong financial foundation to invest in the future,” Karen Hanlon, senior vice president of finance, said in a conference call with reporters.

Hanlon noted that the organization has $7 billion in cash and investments.

Though Highmark Health's loss was driven by negative results at Allegheny Health Network, Hanlon said, the hospitals are making progress in improving their finances, which should lead to positive operating margins.

“We feel that the turnaround is going well,” she said.

West Penn Allegheny recently secured a $700 million loan that it used to redeem more than $600 million in bonds Highmark purchased as part of its deal to acquire the hospitals.

Officials said the hospital system's ability to take on the loan showed that its finances have improved.

Add Alex Nixon to your Google+ circles.

 

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Stocks slammed as manufacturing slows in U.S., abroad
  2. Consol Energy cutting retiree health benefits, phasing out pension
  3. LNG exports get federal approval from Dominion’s Cove Point terminal
  4. Hospitals, doctors in Pa. received $32M in 5 months from drug, medical device companies
  5. Retirement planning is about more than just money
  6. Google Pittsburgh instrumental in fight against hackers, co-directors say
  7. EPA says greenhouse gas releases from wells, pipelines decline
  8. Western Pa. unemployment rate holds steady in August
  9. Study: Wellness programs don't save money, but employee health improves
  10. Cranberry-based Prodigo Solutions: Hospitals can reduce high supply costs
  11. Education spending helps to widen wealth gap
Subscribe today! Click here for our subscription offers.