For executives at West Penn Allegheny Health System (pdf), fiscal year 2012 was as bad as feared. The Pittsburgh-based health system recorded operating losses of $112.5 million, and after factoring in investment income and donations, West Penn still lost $37.8 million.
The $112.5 million in operating losses more than doubled from FY 2011, when they reached $51.8 million. The net loss of $37.8 million also diverged greatly from the $20.4 million in profit recorded in FY 2011.
A silver lining for West Penn was that it recorded $37.8 million in profit in the fourth quarter of 2012. That total is still down 7 percent from the fourth quarter of 2011, but it still helped offset an otherwise tumultuous financial year.
Last week, Fitch Ratings downgraded West Penn's revenue bonds to "CCC" from "B+", saying the multi-notch downgrade was a direct result of the health system's failed merger negotiations with health insurer Highmark.
Other operating results from West Penn's FY 2012 included a 6.4 percent drop in inpatient discharges and a 2.3 percent decline in total revenue, from $1.6 billion in 2011 to $1.56 billion in 2012.
The $112.5 million in operating losses more than doubled from FY 2011, when they reached $51.8 million. The net loss of $37.8 million also diverged greatly from the $20.4 million in profit recorded in FY 2011.
A silver lining for West Penn was that it recorded $37.8 million in profit in the fourth quarter of 2012. That total is still down 7 percent from the fourth quarter of 2011, but it still helped offset an otherwise tumultuous financial year.
Last week, Fitch Ratings downgraded West Penn's revenue bonds to "CCC" from "B+", saying the multi-notch downgrade was a direct result of the health system's failed merger negotiations with health insurer Highmark.
Other operating results from West Penn's FY 2012 included a 6.4 percent drop in inpatient discharges and a 2.3 percent decline in total revenue, from $1.6 billion in 2011 to $1.56 billion in 2012.
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