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Penn State Health Milton S. Hershey Medical Center. PHOTO/PROVIDED BY PENN STATE HEALTH
Penn State Health reports improved financial performance
Ed Gruver//February 28, 2024//
An improved financial performance for the first six months of fiscal year 2024 has been reported by Penn State Health.
According to a press release, factors contributing to improved operating income included steady increases in patient volumes at Lancaster Medical Center and Hampden Medical Center along with additional patient beds opening at both facilities. Increases in emergency department volume, surgical volume and outpatient clinic visits were also reported by Penn State Health.
“Our efforts to be fiscally responsible while also responding to the needs of the communities we serve are working,” Penn State Health CEO Steve Massini said in a statement. “We are committed to operating efficiently for our long-term sustainability while always delivering the best quality medical care and experience to the people of Pennsylvania and beyond.”
Penn State Health’s operating revenue from July to December 2023 improved by $268 million compared to the same period a year ago. In addition, operating income was boosted by a one-time payment related to the transition of Pennsylvania Psychiatric Institute after Penn State Health became the sole operator.
Penn State Health reported improvements compared to the prior fiscal year. Improvements include debt service coverage, total debt to cash flow and operating margin. Penn State Health’s total unrestricted cash and investments improved during the current fiscal year, as did its cash to debt ratio.
Massini said Penn State Health’s clinical brand remains strong, and its relationships with Highmark Health and Penn State continue to draw people toward the system.
“Our improved financial performance signals the long-term success of Penn State Health even at a time when health systems nationwide are experiencing significant headwinds,” said Paula Tinch, executive vice president and CFO for Penn State Health. “However, we realize we have more work ahead as we continue to drive our revenue growth and continue to improve our operating costs.”
