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West Penn Allegheny Issues Statement on Auditor's Opinion, Medical School Delay
Friday, December 30th, 2011
Attributable to Keith T. Ghezzi, M.D., Interim President and CEO, West Penn Allegheny Health System
West Penn Allegheny Health System (WPAHS) released audited financial statements for the fiscal year ended June 30, 2011, which reflect a $51.8 million loss from operations.
KPMG has expressed doubt in its audit report about WPAHS' ability to continue as a going concern. In developing its unqualified opinion, KPMG took into consideration the System’s recurring losses from the past several years and financial performance since June.
Accounting standards preclude any comments by auditors on future plans or events, most notably the proposed affiliation with Highmark. Ken Melani and his team have demonstrated their commitment to ensuring that patients have choice and access to WPAHS doctors and facilities by committing $475 million to facility improvements, clinical program growth and education.
Highmark’s financial support is enabling immediate improvements in our facilities. For example, we will reopen West Penn Hospital’s emergency department in the first quarter of 2012, and we are updating Forbes Regional Hospital to successfully compete in the eastern suburbs. Our other facilities will see program and technology improvements.
As we reinvent our system with Highmark’s support, we are implementing new ways to operate more efficiently and to grow revenue, while providing the best possible care to our patients. Early efforts to streamline operations and to increase accountability are beginning to yield measureable improvements.
Separately, we are announcing today that WPAHS has determined that it will delay the opening of the Temple University School of Medicine at the West Penn Allegheny Health System regional campus until the affiliation is approved by regulators. Leaders of the Temple University School of Medicine have been consulted and they understand this decision.
We are absolutely committed to our partnership with Highmark and to improving our financial situation. The audit report underscores the need for expedited review and approval of the Highmark-WPAHS transaction to preserve important community assets and preserve access to excellent healthcare for all residents of Western Pennsylvania
