UPMC is blaming a $371 million operating loss on increased medical utilization and rising pharmacy costs. The $371 million loss in the first nine months of 2024 is up from the $177 million loss reported over the same span last year. The loss comes despite increasing operating revenues. UPMC from January through September generated more than $22.2 million in revenues, up from about $20.6 million at the same point last year. UPMC spent $109 million on restructuring costs in the first nine months of this year. In April, it slashed 1,000 jobs, citing post-pandemic challenges. The cuts impacted just over 1% of UPMC's more than 100,000-member workforce. UPMC recently announced it was laying off another 100 employees and eliminating 200 vacant positions in an effort to cut costs.
SUNBURY — The Sunbury Community Hospital has been vacant for nearly four years with little forward movement, even after the property was acquired by a Montour County-based economic development organization two years after it closed. The former hospital was purchased by nonprofit UPMC Susquehanna from for-profit Quorum Health on Oct. 6, 2017. UPMC closed the hospital in early 2020, leaving Sunbury without a full-scale medical center for the first time in 125 years. The property was acquired by DRIVE in mid-2022 when UMPC donated the location to the economic development group. According to Jennifer Wakeman, executive director of Driving Real Innovation for a Vibrant Economy, the organization has been marketing the property since the acquisition. Wakeman said there is some potential movement on the horizon but she declined to speak of them publicly. The property is located on approximately 12 acres. It is assessed at $2,399,200 across 20 different parcels in the same area of North 11th Street.
A $120 million deal to sell three Northeast Pennsylvania hospitals to a nonprofit group has fallen through after the proposed buyer could not secure financing. Community Health Systems Inc. announced Tuesday that WoodBridge Healthcare Inc. will not purchase Moses Taylor Hospital, Regional Hospital of Scranton and Wilkes-Barre General Hospital, which operate under CHS' for-profit Commonwealth Health System. WoodBridge officials said Tuesday that they retained investment banking firm Zeigler to secure deal funding for the acquisition by issuing tax-exempt bonds. "The entire WoodBridge team is extremely disappointed in this outcome," said Joshua Nemzoff, board chair of WoodBridge Healthcare Inc. "We very much looked forward to being part of the Scranton and Wilkes-Barre communities and partnering with the Commonwealth Health staff and physicians on providing the best healthcare in the region. CHS has gone out of its way to help get this deal done including significant concessions on their part. We appreciate all their efforts to do so."
Pontiac General Hospital has filed for bankruptcy days after announcing the loss of Medicare funding and announcing over 240 layoffs. According to a court document, the hospital, located on 461 W. Huron St., filed for Chapter 11 bankruptcy on Saturday. The document shows the hospital has between $1 million and $10 million in assets, owes somewhere between $1 million and $10 million and has between 50 and 99 creditors. The hospital last week announced the layoffs of over 240 people after losing Medicare program funding.
CareMax announced it has entered into an agreement to sell its management services organization and also announced a sale process for the company's core centers' assets. The sale transactions will be implemented pursuant to a prearranged Chapter 11 plan supported and funded by 100% of CareMax's current secured lenders. CareMax has entered into an agreement with an affiliate of Revere Medical, which will acquire the Medicare Shared Savings Program portion of the company's management services organization that supports care provided to approximately 80,000 Medicare beneficiaries.