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Format: 04/17/2014
Format: 04/17/2014

News

West Penn Allegheny Health System Continues to Execute Plan to Redesign its Delivery System

Tuesday, November 30th, 2010

West Penn Allegheny Health System (WPAHS) today reported its financial results for the first quarter of its 2011 fiscal year, demonstrating that it is continuing its tradition of clinical excellence while executing its restructuring plans. WPAHS’ first quarter of fiscal year 2010 ended September 30, 2010. 

WPAHS recorded a net profit of $3.6 million in the first quarter. The System’s first quarter results also included restructuring costs of $3 million specifically associated with the reconfiguration of its delivery system. Additionally, the System posted an operating loss of $3.6 million in the first quarter, after a $9.5 million gain from the sale of its outpatient dialysis centers to DaVita, the nation’s largest independent provider of dialysis care. According to Christopher T. Olivia, MD, president and CEO, West Penn Allegheny Health System’s relationship with DaVita will enhance the scope and sophistication of the care the System can provide for patients with renal disease.

WPAHS also recently announced changes to its city hospitals as part of its overall plan to revise its delivery model. West Penn Hospital in Bloomfield will continue to support inpatient service for the system’s Women’s and Infants’ Center, including obstetrics, gynecology, gynecologic oncology, and neonatal intensive care unit. In addition, it will offer inpatient services for the renowned West Penn Burn Unit and inpatient rehabilitation services. Allegheny General Hospital (AGH) on the North Side will serve as West Penn Allegheny’s quaternary facility. Both facilities will continue to offer numerous outpatient services and outpatient surgery programs.

“Our many operational improvements and expense reductions have enabled us to weather declining inpatient volumes in the city of Pittsburgh,” said Dr. Olivia. “However, we know we need to do more to ensure our long-term financial security. We are now undergoing a major transformation of our health care delivery model to help us reach an operating profit in the future. This is necessary for us to continue to fulfill our charitable purpose and mission, which we believe are vital to the people of Western Pennsylvania.”

West Penn Allegheny’s first quarter results also demonstrate evidence of AGH’s resurgence as major referral center for heart transplantation. Twelve heart transplants were performed at AGH during the quarter, a 200 percent increase year over year.

The hospital is on a record pace to perform over 30 heart transplants in calendar year 2011 and the program’s quality indicators place it among the nation’s top transplant centers, said Stephen Bailey, MD, Director of AGH’s Division of Cardiac Surgery.

“The growth of our heart transplant program over the past five years exemplifies this organization’s commitment to developing high quality, quaternary services and recruiting the highest caliber of medical professionals to lead them,” said George Magovern, MD, Chair of the System’s Department of Thoracic and Cardiovascular Surgery.

Srinivas Murali, MD, Director of AGH’s Division of Cardiology and Medical Director of the hospital’s Gerald McGinnis Cardiovascular Institute said the heart transplant program has been greatly enhanced through significant investment in the Cardiovascular Institute and the recruitment of talented, nationally recognized heart transplant specialists like Raymond Benza, MD, George Sokos, DO, and Robert Moraca, MD.

 

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