Pittsburgh-based Allegheny Health Network reported a second straight loss for the nine month period ending Sept. 30 as labor cost problems persisted and investment income was down.
The health system, whose parent company is Highmark Health, reported an overall loss of $198.2 million compared with a loss of $13.7 million for the same period last year. Operating income, excluding any investment declines, totaled a loss of $116.2 million versus a $41.7 million loss in 2021.
"AHN has experienced an increase in labor costs driven by staffing shortages and higher wage rates resulting from the usage of agency staffing, needs-based bonuses and overtime," management said in a statement accompanying the results. Contracted labor costs more than tripled in the period to total $146 million.
CEO and president of AHN, Cynthia Hundorfean, is taking up a role as chief living health development officer in the new year to consolidate the system's value-based care model.