Pittsburgh-based Allegheny Health Network recorded an operating income of $7.7 million (0.6% operating margin) in the first quarter of 2025, up from an operating loss of $31.3 million (-2.5% margin) during the same period last year, according to its May 29 financial report.
Five things to know:
1. Allegheny Health Network reported total operating revenue of $1.4 billion for the three months ended March 31, up from $1.2 billion during the same quarter last year.
2. Total operating expenses were $1.4 billion for the quarter, up from $1.3 billion during the same period last year.
3. The system reported a net income of $13.4 million in the first quarter, up from a $26.8 million net loss during the same period last year.
4. Highmark Health — Allegheny Health Network’s parent company — recorded $15 million in operating income in the quarter, $8 billion in revenue and $13 million in net income. Highmark Health Plans reported $6.1 billion in operating revenue and a $9 million operating loss in the first quarter of 2025, citing elevated utilization and continued industrywide pressures that carried over from last year.
5. “Allegheny Health Network had a strong start to the year, reporting a positive operating margin for the first time in five years without pandemic-related assistance,” Carl Daley, CFO and treasurer of Highmark Health, said in a May 29 news release. “This was driven by higher patient volumes as a result of management actions and an unusually severe respiratory season.”
