Jul 23, 2025 4 min read

WVU Medicine Uniontown Hospital is among four hospitals that suffered operating losses in 2024, according to a new report from Pennsylvania Health Care Cost Containment Council.

A new report from the Pennsylvania Health Care Cost Containment Council (PHC4) shows that 37% of the state’s general acute-care hospitals posted a negative operating margin in 2024, including four in the region.

That means more than one-third of those hospitals lost money on their operations. And 60% of those hospitals that posted negative operating margins were rural hospitals.

Of the 153 acute care hospitals in Pennsylvania, just under half ended the year with operating margins over 4%. Operating margins between 3% to 5% are generally considered to be healthy.

PHC4 data showed four area hospitals were among those who finished the fiscal year with operating margins in the red: Penn Highlands Mon Valley, Penn Highlands Healthcare Connellsville, WVU Medicine Uniontown, and UPMC Greene.

Penn Highlands Healthcare Connellsville reported the highest operating loss in 2024, at minus 16.95%

Also reporting losses were Penn Highlands Mon Valley, with a minus 6.5% operating margin; UPMC Greene, minus 6.13%, and WVU Uniontown, a minus 5.82%.

“While the data shows many Pennsylvania hospitals experienced relatively healthy margins in fiscal year 2024, 37% lost money on operations and 32% lost money overall,” said Barry D. Buckingham, executive director of PHC4, in a statement. “Also, the continued growth of uncompensated care remains a major concern for Pennsylvania hospitals.”

The data is in the first volume of a three-part series of financial reports published annually by PHC4.

Corinne Laboon, system manager of communications for Penn Highlands Healthcare, said the health system, like many other rural health systems across the country, continues to struggle with low reimbursement rates, inflation, and recruitment.

“The health system has a financial improvement plan. Throughout the health system, we continue to reduce expenses and identify new opportunities to grow revenue,” said Laboon.

The PHC4 data also shows the statewide average operating margin increased from 2.26% in fiscal 2023 to 6.8% in fiscal 2024.

The report shows that 14% of hospitals posted an operating margin between 0% and 4%, and 49% posted an operating margin higher than 4%.

UPMC Washington reported a 3.23% operating margin, and AGH Canonsburg’s operating margin was 0.27%.

A UPMC spokesperson said UPMC hospitals operate as part of the UPMC network and are “supported by the strength and resources of UPMC, one of the nation’s leading integrated health systems.”

“While PHC4s isolated data points for FY2024 may be interesting to see for individual hospitals, it is important to note that UPMC has always reported its financial results as a system, posting those results quarterly on its website,” said the spokesperson, who said the most comprehensive up-to-date report on UPMC’s financial performance for the first quarter of 2025 can be found online at https://dam.upmc.com/-/media/upmc/about/finances/documents/cy2025-q1-financial-and-operating-report.pdf?rev=43ea39b826af4f63afc2caf109d41684&hash=9F0E1A4E85400EADA8343C9CA7899F1E.

“The report reflects coordinated efforts across our provider-payer system to expand access to high-quality care while better managing rising costs. We remain focused on ensuring UPMC remains strong in advancing our mission for patients, members, communities, and employees during an ever-evolving health care environment,” she said.

WVU Medicine Uniontown was not able to respond before the deadline.

Buckingham said several factors are driving the cost of health care, including the increasing costs of medication, equipment and supplies.

He said that going forward, federal cuts – including cuts to Medicaid and the CHIP program – will present challenges to hospitals that rely on the payments as a significant source of revenue, especially rural hospitals.

“It’s very concerning,” said Buckingham. “Those cuts will be challenging. Right now, our general assembly is wrestling with those federal changes and we don’t know what the result of that will be, or how to address the potential shortages of Medicaid and CHIP.”