Allegheny Health Network, a seven-hospital nonprofit system based in Pittsburgh, reported an operating loss of $39 million for 2016 following a $36.5 million operating loss the year prior, according to recently released unaudited financial statements.
AHN saw revenues climb to $2.85 billion in 2016, up from $2.64 billion in 2015. The system said inpatient discharges increased nearly 2 percent year over year to 87,208 in 2016.
However, higher-than-projected expenses caused the system's operating loss to widen last year.
An AHN spokesman told the Pittsburgh Post-Gazette the rise in expenses was due, in part, to revenue cycle office restructuring costs. The system also recorded year-over-year increases in labor and supplies costs.
After factoring in investment income and interest expense, AHN ended 2016 with a net loss of $40.04 million, compared to a $39 million net loss in 2015.
More articles on healthcare finance:
Louisiana Heart Hospital to close after filing for bankruptcy
20 things to know about balance billing | 2017
Ochsner to take over St. Bernard Parish Hospital as billing issues cause debt to mount