Six-hospital West Penn Allegheny Health System, Pittsburgh, finished its 2003 fiscal year, ended June 30, with a $15.5 million loss on $1.2 billion in revenue, compared with a $33 million loss on $1.1 billion in revenue in fiscal 2002. The improvement reflects a $25.3 million unrestricted grant from the region's dominant insurer, Highmark Blue Cross and Blue Shield. Without the grant, the system's financial performance deteriorated by nearly $8 million. West Penn Allegheny attributed the deterioration to increased labor and supply costs, reduced Medicare reimbursement, turnover of an anesthesia group, lower investment income and changes in payer mix. Officials noted that from 2002 to 2003 revenue grew by $105 million, or 9.3%. -- by Cinda Becker
Grant shrinks loss at troubled Pa. system
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