The health system posted total operating revenue of $5.1 billion in the 12 months ended Dec. 31, up from $4.7 billion posted in the same period in 2023. Total expenses reached $5.3 billion in 2024, up from $4.9 billion in 2023.
Allegheny Health Network officials attributed the health system’s improved operating performance to higher volumes, higher pharmacy revenue, a favorable Medicare wage index and market basket increases, and third-party payer adjustments.
As of Dec. 31, the health system had 53 days cash on hand, down from 54 on Dec. 31, 2023. The system’s long-term debt was $910.5 million as of Dec. 31, an improvement from $937.1 million on the same date in 2023.
The health system reported a net loss of $129.1 million in 2024, an improvement from a $140.3 million loss in 2023.
Allegheny Health Network is part of Highmark Health, which reported a $209 million operating loss in 2024 and a net income of $50 million.
Highmark’s health insurance business faced increasing headwinds from rising healthcare usage, continued effects of Medicaid redeterminations, and high prescription drug costs, particularly GLP-1s.
“We expect these industrywide challenges to continue, but our comprehensive strategies and strong financial position will allow us to navigate these difficulties while financing and powering our transformational strategy,” Highmark CFO Carl Daley said in a March 13 news release. “We’re built for this and well-prepared to weather this challenging environment.”
