Text Size: A- A+ Facebook Twitter LinkedIn YouTube

Breaking News

YouTube

SEARCH NEWS

Format: 04/16/2014
Format: 04/16/2014

News

West Penn Allegheny Health System Significantly Improves Financial Performance in Fiscal Year 2009, Posts Fourth Quarter Profit

Friday, October 30th, 2009

Pittsburgh, PA (October 30, 2009)– West Penn Allegheny Health System (WPAHS) today reported its fourth quarter and year-end financial results for the fiscal year 2009, demonstrating markedly improved performance year-over-year.

WPAHS recorded a net profit of $2.1 million in the fourth quarter, with an operating loss of $3.8 million. This is a substantial improvement over the year-ago quarter, when WPAHS posted a net loss of $69.8 million, and a $73.3 million operating loss.

The System also posted a net loss of $25.2 million in fiscal year 2009, a $32.6 million improvement over the prior year. The System’s FY2009 excess margin was a loss of 1.5 percent, a 60 percent improvement year-over-year. In addition, WPAHS’ operating loss of $38.5 million is also a significant improvement over the fiscal year 2008 loss of $88.8 million. Fiscal year 2009 operating margin was a loss of 2.4 percent, compared to a 5.9 percent loss in the year-ago period.

WPAHS also improved its cash position by $39.5 million in FY2009, an improvement of 11 percent year-over year. The System’s total revenues were $1.6 billion, up nearly 7 percent year-over-year. In addition to improving year-over-year, the System made operating progress during each quarter in fiscal year 2009. WPAHS’ 2009 fiscal year ended June 30, 2009.

“We are pleased to be moving forward at a steady pace, especially considering the economic challenges that have confronted the entire industry over the past year,” said Christopher T. Olivia, M.D., president and CEO, West Penn Allegheny Health System. “The entire West Penn Allegheny team is resolved to keep improving our financial strength so that we continue to provide the highest quality care to the Pittsburgh market. We are committed to our plan for the future, as we know that a unique physician-led, patient-focused healthcare system is vital to this region’s wellbeing.”

WPAHS made many strides in recruiting top doctors to its physician-led organization, while also further improving and integrating its operations in FY2009. For example, the System filled a number of key leadership roles with recognized physician leaders:
• Sanford R. Kurtz, M.D., Executive Vice President, Chief Medical Officer and President, WPAHS Physician Organization, recently joined WPAHS from the physician-led Lahey Clinic where he served as Chief Operating Officer and Vice Chair of the Clinic's Board of Governors. Dr. Kurtz, a nationally recognized physician executive, will oversee the newly established WPAHS Physician Organization, which will effectively integrate the System’s more than 700 employed physicians.

• Michael A. DeVita, M.D., Executive Vice President, Medical Affairs, joined WPAHS from UPMC where he held the role of Associate Medical Director for Quality and Medical Management. He is a widely acclaimed medical ethicist and one of the foremost experts on simulation research. At WPAHS, Dr. DeVita leads System-wide efforts in quality, research and education.

• Donald W. Moorman, M.D., System Chair, Department of Surgery. Dr. Moorman will assume his new post with WPAHS on or before January 1, 2010. He is currently vice chair of clinical affairs and associate surgeon-in-chief at the Beth Israel Medical Center in Boston. He is also director of the Beth Israel’s Trauma Center and an associate professor of surgery at Harvard Medical School.

The System also continues to recruit quality physicians in all clinical areas. While physician attrition is a normal part of any healthcare system, last year, WPAHS was able to recruit more than twice the number of physicians that left the System. WPAHS also appointed seasoned healthcare leaders to serve as CEOs at the West Penn-Forbes Campus in Monroeville and the Alle-Kiski Medical Center in Natrona Heights, in addition to several other senior leader recruitments.

WPAHS also is moving forward in integrating its operations to enable higher quality care. The System is consolidating its services in the city of Pittsburgh. Allegheny General Hospital will serve as the System’s principal tertiary hospital, while West Penn Hospital will continue to provide inpatient and outpatient services to the people who depend upon it for care. The System will support expansion at Allegheny General Hospital and free more beds for high demand, complex services. WPAHS already has begun transitioning its city-based inpatient obstetrical services to West Penn Hospital and its inpatient psychiatry program to the West Penn-Forbes Campus and the Alle-Kiski Medical Center.

“We still have much work to do,” said Dr. Olivia. “However, our results show that we are headed in the right direction. I’m very proud of our integrated team of nurses, physicians and support professionals who worked so hard over the past year to create such impressive results.”

###
 

X
West Penn Allegheny Health System
Tell us who you are:

What areas do you use on our website?*
(select more than one if it applies)











Did you find what you were looking for?


Would you refer others to our website?

Can we contact you for future questions?

CAPTCHA math question:* 7 + 5 =

Thank you for completing the West Penn Allegheny Health System website survey.
We value your feedback and comments.