Allegheny Health Network reports $147 million operating loss for 2024
The red ink continues to gush from the medical industry in the wake of the COVID-19 pandemic, as Allegheny Health Network — a division of Highmark Health — has reported an operating loss of $147 million for the 2024 fiscal year. The financial results for the year were made public on Friday, March 14.
While still a loss, the results are a slight improvement over the operating loss of $172.75 million that AHN sustained over the 2023 fiscal year.
Highmark Health as a whole reported a loss of $209 million for 2024, with Highmark’s insurance division, Highmark Health Plans, reporting a loss of $166 million.
In their annual report, Highmark Health cited “higher volumes across the organization, higher pharmacy revenue, favorable Medicare wage index and market basket increases, and third-party payer adjustments” as reasons for the slight improvement.
Operating expenses in the AHN division grew substantially, from $4.87 million in 2023 to $5.27 million in 2024. This was only slightly offset by the growth in total revenue, which rose from $4.7 million in 2023 to $5.12 million in 2024.
Highmark’s annual financial report credits the rise in revenue in part to “increased clinical access and investments in clinical employees,” as well as the group’s decision to “(move) more nursing staff to full-time employees, reducing dependence on high-cost agency staffing.”
In addition, Allegheny Health Network recorded 3.87 million physician visits in 2024, a 4.9% increase over 2023, and a record-high for AHN since its founding in 2013, according to Highmark’s financial report.
Allegheny Health Network operates numerous outpatient care facilities in Butler County, including AHN Primary Care on Technology Drive and the AHN Cancer Institute on Hollywood Drive, both in Butler.
Unlike Independence Health System, which includes Butler Memorial Hospital, Allegheny Health Network is under an umbrella which also includes the major health insurance provider Highmark.
Other companies under the Highmark Health umbrella include UnitedConcordia Dental, and enGen, a health technology firm.
