West Penn Allegheny Health System overstated its patient revenue by $67 million over the past three fiscal years, the Pittsburgh systems 2008 unaudited financial statements show. West Penn officials said in July the system would write off the errors, but that it was unclear how much could be attributed to prior years.
Mistakes estimating contractual allowances, bad debt and expected patient revenue inflated the systems revenue by $5.4 million in 2007 and by $13.1 million in 2006, according to records. The remaining $48.5 million in overstated revenue was in fiscal 2008, which ended June 30. West Penn, which owns five hospitals, lost $93.9 million on operations off revenue of $1.5 billion for 2008. The system also wrote off another $6 million unrelated to expected patient revenue, bringing the total adjustment to $73 million. -- by Melanie Evans
What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.