Pittsburgh-based Allegheny Health Network reported an operating loss of $25.9 million (-2.1% margin) in the second quarter of 2024, an improvement over a $47.8 million operating loss (-4.2 margin) posted over the same period last year.
AHN saw total operating revenue of $1.3 billion for the second quarter ended June 30, up from $1.1 billion posted over the same period in 2023, according to its Aug. 29 financial report. Net patient revenues were $1.2 billion in the quarter, up from $1.1 million over the same period last year.
Total operating expenses hit $1.3 billion in the quarter, up from $1.2 billion reported over the same period last year. Salaries, wages and fringe benefit costs were $665.8 million, up from $629.8 million. Patient care supply costs were $309.2 million, up from $280.5 million.
For the six months ended June 30, AHN reported an operating loss of $53.7 million (-2.3% margin), up from an operating loss of $64.2 million (-3.6% margin) posted over the same period last year.
AHN's management said in the report that the operating improvement was driven by higher volumes across the system, higher pharmacy revenue, favorable Medicare wage index and market basket increase, and third-party payer adjustments.
The system is part of Highmark Health, which reported an operating income of $307 million and net income of $417 million in the first six months of 2024, according to an Aug. 29 Highmark news release. Highmark Health Plans reported an operating income of $304 million in the first half of 2024, driven by steady membership in its government and commercial businesses.