Highmark reports operating gain of $100M, net loss of $150M

Pittsburgh-based Highmark Health posted an operating gain of $100 million for the three months ended March 31, according to its financial results released May 31.

Highmark Health — which includes the eight-hospital Allegheny Health Network — reported $6.4 billion in revenue for the first quarter of 2022, according to a May 31 news release.

The organization had a net loss of $150 million, which was driven by lower equity performance, Highmark said.

Allegheny Health Network reported a $67 million loss before interest, taxes, depreciation and amortization for the first quarter, largely due to high labor and supply chain costs. It had an operating loss of $100 million.

"Like other not-for-profit health care providers across the country, AHN is facing ongoing cost pressures related to staffing, inflation, supply chain, and continuing COVID-19-related impacts, which we are proactively addressing through our operational and enterprise strategies," James Rohrbaugh, CFO and treasurer of AHN, said in the news release. "Foundational to our strategy is supporting and investing in our team members to address the current staffing challenges, including making significant financial investments in wages, benefits and incentives."

Highmark Health Plans, however, had an operating gain of more than $150 million for the first quarter, according to the report.

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