Pittsburgh-based Allegheny Health Network saw its operating performance turn around in the third quarter of fiscal year 2017, fueled by higher patient volumes and efficiency.
The seven-hospital system reported operating income of $10.6 million in the third quarter ended Sept. 30, according to unaudited financial documents. This is a year-over-year improvement from the network's $17.6 million operating loss in the third quarter of 2016.
Dan Laurent, Allegheny Health Network's vice president of internal and external communications, told Becker's Hospital Review the positive performance reflects increased physician office visits, more efficient operations, readmission reductions and favorable payer contracts, among other factors.
The health system recorded revenue of $771.3 million in the third quarter, up from $711.7 million in the same period a year prior.
At the same time, the health system saw expenses widen to $760.8 million, compared to $729.3 million during the third quarter of 2016. Mr. Laurent said the system's third quarter financial performance reflected investments in expansion and renovations at Natrona Heights, Pa.-based Allegheny Valley Hospital, Saint Vincent Hospital in Erie, Pa., as well as an Epic EHR implementation at its Jefferson Hospital in Jefferson Hills, Pa.
Overall, the system recorded net income of $13.4 million in the third quarter of this year, up from a net loss of $16.3 million in the same period last year.
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