Losses continue at struggling Independence Health System

Losses continue at struggling Independence Health System

Pittsburgh Post-Gazette

November 29, 2023

Ken DeFurio had a good year in 2021, with a bonus and retention award of $245,000—the highest in a decade—driving his total annual compensation as president and CEO of Butler Health System to $1.26 million. Meanwhile, the network of hospitals, doctors’ offices and clinics he headed began a struggle that continued into September: Butler Health System reported losses from operations of $13.2 million in 2021, followed by $22.4 million in 2022 and $43.2 million for the year ending June 30, 2023. The issues continued for the three months ending Sept. 30, with a $12.97 million operational loss, up from the $1.6 million loss posted for the same quarter in 2022, according to results released Tuesday. In January, Mr. DeFurio, 59, helped negotiate the merger of Butler Health System and Excela Health, a five-hospital system that was envisioned as a health care powerhouse to keep competitors at bay. Based on its financial results, the new system is off to a rocky start. Excela Health in Westmoreland County reported operational losses for the three months ending Sept. 30 of $9.69 million, up from a loss of $2 million a year ago. The end of COVID-19-related government grant funding and higher temporary staffing expenses were among the reasons the system cited for the losses.