The quarter’s losses, which include $3 million in restructuring costs associated with the consolidation of West Penn Hospital in Bloomfield, Pa., and Allegheny General Hospital in Pittsburgh, were offset by a $9.5 million gain from the sale of its outpatient dialysis centers to DaVita.
The system has struggled for several years, most recently experiencing a loss of $89.9 million in fiscal year 2010. In response, the health system will consolidate services and cut roughly 400 jobs as part of a restructuring.
“Our many operational improvements and expense reductions have enabled us to weather declining inpatient volumes in the city of Pittsburgh,” Christopher T. Olivia, MD, president and CEO of West Penn Allegheny said in the release. “However, we know we need to do more to ensure our long-term financial security. We are now undergoing a major transformation of our healthcare delivery model to help us reach an operating profit in the future.”
Read the release on West Penn Allegheny.
Read more coverage on West Penn Allegheny:
– West Penn Allegheny Reports Operating Loss of $89.9M
– Consolidation Leaves West Penn Allegheny Cutting 400 Pittsburgh Employees
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