West Penn Allegheny Health System loses $89.9 million

West Penn Allegheny Health System on Monday reported an operating loss of $89.9 million for the fiscal year that ended in June, but its top executive said he remains optimistic about the ailing hospital network.

"We are moving in the right direction," CEO Christopher T. Olivia said in a letter to investors. "However, doing so takes time, resources and unfortunately can be painful."

Hospital officials attributed much of the loss, which was expected, to a $70.7 million reduction in the estimated value of the West Penn Hospital property in Bloomfield and the former Suburban General in Bellevue.