West Penn Allegheny Faces $26.8M Operating Loss, Moody's Bond Rating Declines

West Penn Allegheny Health System in Pittsburgh has posted a $26.8 million operating loss for the first half of the fiscal year, citing lowered inpatient volumes as a main contributor, according to a Pittsburgh Tribune-Review news report.

Other factors contributing to the health system's financial struggles are the $12 million in severance packages, consulting fees and integration expenses at Allegheny General Hospital in North Side Pittsburgh, Pa., and West Penn Hospital in Bloomfield, Pa.

West Penn Allegheny CEO Christopher Olivia, MD, expects improvements in the health system's finances after implementing a more efficient healthcare delivery model. Recently, Moody's Investors Service downgraded the health system's bond rating due to "its weak unrestricted cash positions," according to the report.

Read the news report about West Penn Allegheny Health System's operating loss.

Read other coverage about hospital losses:

- Sun Link Health Systems Reports Growing Operating Losses

- New Jersey Hospital Asks Union Employees to Donate 20% of Paychecks Following Losses

- UPMC Reports $93M Profit, Addition of 815 Full-Time Jobs

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