West Penn Allegheny Health System says one-time charges pushed the nonprofit further into the red in fiscal 2010. The System booked a $70.7 million non-cash asset impairment charge as part of the changes being made to West Penn Hospital and the Suburban Campus of Allegheny General Hospital. It also took an $11.8 million one-time hit for other restructuring costs. The System says without these restructuring costs the operating loss for fiscal year 2010 would have been $7.4 million, while its net profit would have been $19.4 million.
At the same time WPAHS reports that it ended the year with more cash on hand than it has since its formation. The fiscal year ended June 30th, 2010 with $306 million in cash. That is equivalent to 71 days cash on hand. President and CEO, Christopher Olivia says the “improved liquidity” will allow WPAHS to continue its restructuring plans in the current year. “We spent the last two years stabilizing the health system and improving our ability to generate cash flow from operations,” says Olivia, “I believe we are moving forward at a remarkable pace, however, there is still much work to do and many challenges lie ahead.”
Last week WPAHS finalized it plan to restructure operations at West Penn Hospital and the Suburban Campus of Allegheny General Hospital.