WPAHS is still suffering losses
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Six months into its current fiscal year, the West Penn Allegheny Health System has lost $55.9 million -- including $34.1 million from September through December -- as the financially ailing system continues to experience drops in patient volume and revenue.
A year ago, West Penn Allegheny showed a $2.1 million profit for the July-December period. The figures disclosed in the health system's financial report Thursday also showed a six-month $63.9 million operating loss, compared with a $13.1 million loss a year earlier. The WPAHS fiscal year runs from July 1 to June 30.
Patient revenue from July 1 to Dec. 31 fell 4.3 percent, or $32.9 million, compared with the same period a year earlier. Officials largely attributed that drop to a 9.7 percent decline in admissions at West Penn Hospital in Bloomfield.
The lower patient traffic at West Penn was not a surprise because West Penn's emergency department was closed in 2010 and several medical services have been moved to Allegheny General Hospital on North Side as part of a restructuring and consolidation strategy.
Since insurer Highmark's announcement in June that it planned to acquire West Penn Allegheny, officials have said many of those services will return to the Bloomfield campus. West Penn's emergency department is scheduled to reopen before April 1.
Highmark already has committed $475 million to stabilize the region's second largest health system and is awaiting regulatory approval on an affiliation agreement.
In a statement Thursday, Highmark spokesman Michael Weinstein said that the latest financial results "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."
West Penn Allegheny officials declined to comment on the financial report.
The full report can be viewed at http://www.dacbond.com under the "View Disclosure Documents" tab.
First Published February 10, 2012 12:00 am
