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.

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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