Allegheny Health Network records $98M loss in Q1

Although Allegheny Health Network saw its revenue increase 3.6 percent in the first quarter of 2020, the Pittsburgh-based system ended the period with a loss, according to recently released financial documents. 

The health system saw its revenue increase to $890.9 million in the period ended March 31, up from $858.3 million in the same three-month period last year. 

However, the health system's expenses rose more than 10 percent to $950.4 million in the first quarter of this year.

Allegheny Health reported an operating loss of $59.5 million in the first quarter, compared to an operating loss of $4.4 million reported in the same quarter one year prior. 

After factoring in unrealized losses of $48.2 million, interest expenses and other nonoperating activities, Allegheny Health ended the period with a net loss of $98.5 million. In the same period last year, the health system recorded a net income of $19.1 million. 

The healthcare network said the COVID-19 pandemic hurt its finances. In particular, the system saw a reduction in net patient revenue of $161 million from the second week of March until the end of April. 

More articles on healthcare finance: 
U of Vermont Medical Center furloughs about 450 employees
Montefiore loses $96.7M in Q1: 5 things to know
UPMC's net loss hits $653M in Q1, driven by pandemic

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