In the second quarter (Sept. 30, 2011, through Dec. 31, 2011), WPAHS lost $34.1 million, according to the report. In the same period a year before, it recorded a net loss of $1.4 million. Net patient revenues fell 3 percent in the second quarter, while expenses including restructuring rose 2.6 percent.
WPAHS attributed its massive losses to a 9.7 percent decline in acute inpatient discharges. The financially ailing health system has also seen its credit ratings take large hits over the past several months. In December, Fitch Ratings downgraded WPAHS’ bonds from BB- to B+ after Moody’s Investors Service downgraded the system from B2 to Caa1, or junk-bond status.
Pittsburgh-based health insurer Highmark is looking to take over WPAHS for $475 million, but the deal is still pending regulatory approval. Roughly $300 million of the payment would be in loans, while $100 million would be a cash infusion.
Related Articles on West Penn Allegheny Health System:
West Penn Allegheny Expects Approval on Highmark Affiliation by Fall
West Penn Allegheny: UPMC’s Requests for Documents Are “Designed to Harass”
Highmark to Invest $20M in West Penn Allegheny’s Forbes Hospital
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