PITTSBURGH, July 28 /PRNewswire/ -- West Penn Allegheny Health System (WPAHS) officials announced today that a review of the organization's accounting methodology has revealed the need for an adjustment to its balance sheet. The amount of the adjustment is approximately $73 million.
West Penn Allegheny undertook a special review of its accounting practices with the assistance of an outside accounting firm. The review disclosed that West Penn Allegheny's accounting methodology was overestimating the System's net accounts receivable. As a result, the System expects to show substantial operating losses.
"While this discovery is disappointing, it is essential information that allows us to build a plan for a sustainable future," said Christopher T. Olivia, M.D., WPAHS president and chief executive officer.
Dr. Olivia said West Penn Allegheny has adopted an industry "best practice" accounting methodology to help ensure that a situation of this nature does not reoccur.
"We have undertaken material actions to enhance the management of our organization, and to improve operations and our financial reporting process. What we have gained in this review of our finances is clarity. With that clarity we will be able to plan our actions and initiatives with confidence and a sound understanding of what is required of us to achieve our objectives," Dr. Olivia said.
|SOURCE West Penn Allegheny Health System|
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