Allegheny Health has 1Q loss, but foresees profits in ’18

Pittsburgh Post-Gazette

The Allegheny Health Network recorded a $3.84 million operating loss for 2017’s first quarter, but produced net positive income and a better-thanprojected operating margin that offers encouraging signs for the seven-hospital system.

For the three months ending March 31, AHN had net income of $115,000, which spokesman Dan Laurent attributed to strong investment income “and operating performance all around.” He declined to provide specifics on AHN’s investment portfolio or how much investment income contributed to the positive net income.

The unaudited numbers were posted Thursday on the Pennsylvania Insurance Department website, www.insurance.pa.gov.

The state insurance department requires the quarterly financial disclosure as part of its 2013 approval of Pittsburgh

late last year and submitted to the Pennsylvania Insurance Department in early April. Operating revenue is the amount of patient revenue the network took in minus the expense of operating the facilities.

AHN’s plan had projected a $14 million first-quarter operating loss and a $16 million net income loss. It anticipated a negative 1.9 percent operating margin.

The Allegheny Health Network plan also projected the network will achieve profitability in 2018.

Inpatient discharges were up slightly for the quarter, from 22,486 a year ago to 22,694 this year, while outpatient registrations dropped from 322,086 to 319,734.

The network reported it had 78 days cash on hand, representing funds it has immediately at its disposal, compared with 72 days for the same period in 2016.

The results, said Mr. Laurent, are “great news for not just our organization, the patients we serve and our thousands of dedicated employees, but for everyone in our region who values the availability of high-quality choices for their health care needs.”