Allegheny Health records nearly $18M operating loss

Alia Paavola -

Although Allegheny Health Network saw its revenue increase 3.9 percent in the quarter ended Sept. 30, the Pittsburgh-based system ended the period with an operating loss, according to recently released financial documents

The health system saw its revenue rise to $932.5 million in the third quarter of 2020, up from $897.4 million the same quarter one year prior. But the health system's expenses also rose 6.9 percent to $950.4 million in the third quarter. 

Allegheny Health reported an operating loss of $17.9 million in the third quarter. This compares to an operating gain of $4.1 million recorded in the third quarter of 2019. 

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 investment returns, income taxes and other unrealized gains, Allegheny Health ended the period with a net income of $598,000. This compares to an $8.4 million net income in the third quarter of 2019. 

The health system said it continues to evaluate the financial hit from the COVID-19 pandemic, but estimates that through Oct. 31, it experienced a reduction of net patient revenue in excess of $260 million. 

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