Allegheny Health Network sees first loss in 11 quarters

Pittsburgh-based Allegheny Health Network reported an operating loss of $116 million through the first half of 2020, according to recently released financial results. The loss follows 11 consecutive quarters of positive earnings.

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In the first half of last year, the health system saw an operating gain of $20 million. It attributed the operating loss to sharp volume declines associated with the COVID-19 pandemic.

For the six-month period ended June 30, compared to last year, the system saw a 13 percent decrease in discharges and observations, an 11 percent decrease in emergency department visits, a 12 percent decrease in outpatient registrations, a 17 percent decrease in hospital surgical cases, and a 28 percent decrease in ambulatory surgery center cases. 

Health system officials said it has seen volume return in July. 

Allegheny Health System, which consists of nine hospitals, is a subsidiary of health insurer Highmark Health, which saw a net income of $511 million and an operating gain of $590 million in the first six months of 2020. 

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