West Penn Allegheny Health System, Pittsburgh, has postponed plans to open a medical school after an audit revealed a $51.8 million operational loss for fiscal 2011, according to a news release.
West Penn postpones medical school plans
The losses were reflected in the fiscal year that ended June 30. West Penn planned to open a four-year medical school in conjunction with Temple University School of Medicine. KPMG, in its audit, detailed concerns about the health system's future.
“The audit report underscores the need for expedited review and approval of the Highmark-WPAHS transaction to preserve important community assets and preserve access to excellent healthcare for all residents of Western Pennsylvania,” Dr. Keith Ghezzi, West Penn interim president and CEO, said in a prepared statement.
Pittsburgh-based Highmark announced in November it would provide up to $400 million to struggling West Penn as part of the takeover.
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