West Penn Allegheny Health System's operating losses accelerated to $32 million during the three months ended in December. The previous quarter saw operating losses of $25.2 million, bringing the system's figure for the first half of its fiscal year to $57.27 million.
West Penn sees operating losses quicken
The system reported revenue of $387.3 million for its second quarter (PDF) and $774.8 million for the six months. Downsizing at West Penn Hospital—a plan that system officials said in November they would reverse—contributed to a 4.3% drop in patient revenue during the six months ended in December compared with the same period a year ago.
The loss does not include restructuring costs at the troubled Pittsburgh health system, which is seeking state approval to be acquired by insurer Highmark. West Penn Allegheny reported restructuring costs of $4.7 million for its second quarter and $1.9 million in its first quarter.
West Penn Allegheny officials declined to comment on the unaudited financial results, a spokeswoman said.
Michael Weinstein, a spokesman for Highmark, said in a written statement: “The latest financial results from WPAHS show once again the need for expedited approval of this transaction from state regulators. Highmark remains fully committed to this affiliation and the sooner approvals are received, the sooner we will be able to work to further strengthen WPAHS and provide the people of Western Pennsylvania with continued access to a world-class health system.”
A $50 million grant from Highmark and another $50 million loan were reported on West Penn Allegheny's balance sheet, a spokeswoman said.
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