Pennsylvania's West Penn Allegheny Health System lost $75.7 million in the nine-month period ending March 31, as Highmark continues to seek acquisition of the struggling health system, West Penn announced last week.
The system saw net patient service revenue fall $25.3 million from the first nine months of last fiscal year, largely due to a 7.7 percent drop in patient discharges.
However, during the nine-month period, Western Pennsylvania Hospital (WPH) was only fully operational for one and a half months, compared to six months of full operation that time last year. WPH reopened its emergency department in February and inpatient volumes already have started to rise, according to the earnings report.
Meanwhile, the system reported $7.9 million in restructuring costs thanks, in part, to severance packages from leadership changes.
So far, West Penn has received $100 million from Highmark, which includes a $50 million loan that has been accounted for as long-term debt, noted the earnings report. The system plans to recognize the remaining $50 million as contribution income by the end of the year.
West Penn Board Chairman Jack Isherwood told employees that the system is "aggressively addressing" issues with Highmark's financial assistance by recruiting new physicians, upgrading facilities and expanding services, noted The Pittsburgh Tribune-Review.
"In addition, we are implementing new cost saving measures, which are beginning to produce results," he said.
To learn more:
- here's the earnings report (.pdf)
- read the Pittsburgh Tribune-Review article