ShareThis Page
Allegheny

Allegheny Health Network reports 1st full year of positive earnings

| Wednesday, Jan. 31, 2018, 2:33 p.m.
Allegheny General Hospital, part of Allegheny Health Network, in Pittsburgh's North Side.
Tribune-Review
Allegheny General Hospital, part of Allegheny Health Network, in Pittsburgh's North Side.
Cynthia Hundorfean, the CEO of Allegheny Health Network poses for a portrait in her office on Pittsburgh's North Side on June 27, 2016.
Nate Smallwood | Tribune-Review
Cynthia Hundorfean, the CEO of Allegheny Health Network poses for a portrait in her office on Pittsburgh's North Side on June 27, 2016.
Architectural renderings of AHN Hempfield, the first of four, 10-bed neighborhood hospitals that the Allegheny Health Network wants to open. The first hospital, which AHN hopes to open in the summer 2019, would be located at the corner of Route 30 and Agnew Road.
Dan Speicher | Tribune-Review
Architectural renderings of AHN Hempfield, the first of four, 10-bed neighborhood hospitals that the Allegheny Health Network wants to open. The first hospital, which AHN hopes to open in the summer 2019, would be located at the corner of Route 30 and Agnew Road.

Allegheny Health Network posted its first full year of positive earnings Wednesday and its top executives said the seven-hospital system is on firm financial footing.

In documents filed with the Pennsylvania Insurance Department, AHN reported a net income, or profit, of $51.1 million for the year ending Dec. 31, compared with a $32.6 million loss the previous year. Officials said the earnings mark AHN's best financial performance since its formation in 2013, with operating and net income exceeding financial projections.

Revenue for 2017 came to $3.071 billion, up from $2.854 billion reported for the same period a year earlier. Fourth-quarter 2017 revenue was $781.125 million, less than the $790 million planned.

“We're all in sync,” said CEO Cynthia Hundorfean, noting the strong financial performance and stable patient volumes. AHN is a subsidiary of Highmark Health.

For the fourth quarter, the health care provider had a profit of $9.24 million, a big jump from its anticipated profit of $1 million. This is the fifth consecutive quarter AHN beat prior-year results and projections.

The number of emergency room visits was 10,000 fewer than anticipated in 2017. In addition, the number of doctor visits was nearly 20,000 fewer than planned. Still, doctor visits represented an increase of 100,000 from the prior year.

“We are very pleased with what we're seeing,” said Jeff Crudele, AHN's chief financial officer.

Officials attributed much of the decline in emergency room and doctor visits to AHN's investments in its same-day appointments program started a year ago. That program has lowered the need for trips to the emergency room. Also contributing to the decrease in visits was the introduction of its EPIC electronic health record at additional member hospitals.

When implementation is complete, all of AHN's care sites — from hospitals to physician practices — will be integrated into one electronic health record.

EPIC has a portal called My Chart that allows patients to access medical records and to schedule e-visits with physicians as well as office visits. To date, EPIC is at Allegheny General, West Penn, Jefferson and Forbes hospitals, as well as its Wexford Health + Wellness Pavilion and most physician practices. It is expected to be launched this year at Saint Vincent and Allegheny Valley hospitals, said Dan Laurent, an AHN spokesman.

“It's radically changed the ability of patients to be seen,” Crudele said.

AHN officials also cited $115 million expansion and enhancement of services as St. Vincent Hospital, the opening of a Pediatric Orthopedic Institute in Wexford, as well as its $225 million commitment to expand the reach and quality of its cancer program through new facilities and enhanced collaborations with Johns Hopkins.

In the next four to six weeks, AHN will be announcing the locations of its three planned regional hospitals that will be built during the next two years through a partnership with Texas-based Emerus, a for-profit developer and management company.

The first hospital, announced this month, will be located at the intersection of Route 30 and Agnew Road in Hempfield . Besides the three other regional hospitals, AHN announced plans for a 160-bed, state-of-the-art hospital in Pine Township and renovation of existing facilities throughout Western Pennsylvania.

Suzanne Elliott is a Tribune-Review staff writer. Reach her at selliott@tribweb.com or via Twitter @41Suzanne.

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.

click me