Independence Health System cut its losses by 14% in its first year as a combined health system, the Pittsburgh Post-Gazette reported Feb. 27.
Butler (Pa.) Health System and Greensburg, Pa.-based Execla Health combined in January 2023 to create a 5-hospital system. Though operating as a single entity, the two systems report finances separately, according to the report.
Butler reduced losses in 2023 to $36.7 million, down from $42.2 million in 2022, according to the report. Excela reduced losses to $34.7 million from $40.7 million.
Independence Health System's biggest revenue boost came from eliminating 200 administrative positions across the system, according to the report.
Independence's first year included several bumps in the road, including bond rating downgrades, debt covenant violations and strong competition from the region's giants, Allegheny Health Network and UPMC, both based in Pittsburgh.
The system's CFO Tom Albanesi said the results were encouraging, but more work is needed to get into the black, according to the report.