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Format: 04/19/2014
Format: 04/19/2014


Valley News Dispatch: Alle-Kiski Valley-area hospitals weather recession

Thursday, May 20th, 2010

By Deb Duncan and Rick Stouffer

Half of Western Pennsylvania's hospitals lost money in the year ending June 30, 2009 -- including ACMH Hospital in Armstrong County.

In its annual report released last week, the Pennsylvania Health Care Cost Containment Council found that Armstrong's total income margin for fiscal year 2009 was minus 1.19 percent.

It was among 15 of 29 regional hospitals that lost money, and 73 of 166 hospitals statewide.

The council reported that the Alle-Kiski Medical Center (Allegheny Valley Hospital) in Harrison had a total income margin of nearly 7.3 percent. Rival UPMC St. Margaret near Aspinwall had a total margin of just over 6.8 percent for fiscal 2009.

Total margin figures -- as opposed to operating margin figures -- take into account operating revenues, operating expenses, uncompensated care and investment income.

"We weren't really surprised with the results statewide," said Joe Martin, executive director of the cost containment council. "We knew that this report would fully take in the market crash in fall 2008."

No one from ACMH Hospital was available Friday to comment on the report. But the hospital was close to breaking even when it came to operating revenues and expenses alone. It had an operating margin of minus 0.17 percent for fiscal 2009.

All three local hospitals are nonprofit, so any surplus or profit after operating expenses goes back into the hospital. But ACMH in East Franklin, Armstrong County, is the only independent local hospital. The other two are affiliated with Pittsburgh-based hospital systems.

To read more, visit the Valley News Dispatch website.

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