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Format: 04/18/2014
Format: 04/18/2014


West Penn Allegheny Continues to Make Progress Toward Financial Stability

Tuesday, June 1st, 2010

West Penn Allegheny Health System (WPAHS) today announced its financial results for the third quarter and first nine months of fiscal year 2010, showing solid year-over-year improvements due to restructuring efforts. The System once again posted a net profit, despite inpatient volume declines and other economic challenges. 

WPAHS recorded a net profit of $0.2 million in the third quarter (January through March 2010), with an operating loss of $5.2 million. This is marked improvement over the prior-year period, when WPAHS posted a net loss of $5.8 million and an $8.2 million operating loss. These results were achieved despite a surge in charity care and a harsh winter that hampered inpatient volumes and length of stay while adding to overtime expenses.

The System also posted a net profit of $7.2 million in the first nine months of fiscal year 2010, a significant improvement over the $27.3 million loss in the year-ago period. WPAHS’ operating loss of $11.6 million in the first nine months of this fiscal year is also a $23.1 million improvement over the same time period last fiscal year. Total revenue was also up by $26.3 million in the first nine months of fiscal year 2010 versus the same period of the previous year. This increase was due to solid growth in outpatient volumes, as well as solid performance at the System’s community hospitals, among other factors. In addition, the System lowered its overall expenses through its restructuring efforts.

“We have made many difficult decisions to move closer to financial security,” said Christopher T. Olivia, M.D., president and CEO, West Penn Allegheny Health System. “However, our commitment to high quality, personalized patient care has not wavered. We are redesigning our healthcare delivery system, including the consolidation of services in our city hospitals, to better meet the needs of our patients in a variety of clinical settings throughout the region. We have much work to do, but I am very pleased with the results we have achieved to date.”

WPAHS made progress in a number of important areas in the third quarter of the fiscal year 2010, in addition to achieving improved financial results. For example, the System named Gregory Burfitt as president and chief executive officer for Allegheny General Hospital (AGH) and West Penn Hospital. An accomplished healthcare executive with more than 30 years of senior administrative experience at industry-leading hospitals and healthcare systems, Mr. Burfitt is helping oversee the integration of WPAHS’ two urban hospitals.

Further, the System was recognized with many quality accolades during this time period, including:

• Allegheny General Hospital, Canonsburg Hospital and West Penn Hospital were recognized by the Institute for Healthcare Improvement (IHI) for successful patient care quality initiatives.
• The West Penn Burn Center received verification honors by the Committee on Trauma of the American College of Surgeons and the American Burn Association. Verification is a true mark of distinction for a burn center and an indication that the center provides high quality care to burn patients from time of injury through rehabilitation.
• Canonsburg Hospital was awarded accreditation for its Nuclear Laboratory by the Intersocietal Commission for the Accreditation of Nuclear Medicine Laboratories. This demonstrates the lab team’s commitment to high quality patient care and the provision of quality diagnostic testing.


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