Penn Highlands CEO participates in U.S. Congressional briefing on hospitals’ financial health

In fiscal year 2024, the health system contributed a total economic benefit of $1.9 billion to the economy and the rural areas it serves across 26 counties.

For the MVI

The CEO of Penn Highlands Healthcare recently participated in a U.S. Congressional briefing on Capitol Hill hosted by Vizient, Inc., to discuss the financial health of hospitals and the complex ecosystem of provider reimbursement.

CEO Steven M. Fontaine was a member of a three-person panel of prominent leaders from health systems throughout the United States.

Fontaine began his remarks discussing the significant impact that Penn Highlands Healthcare has on the Pennsylvania economy.

In fiscal year 2024, the health system contributed a total economic benefit of $1.9 billion to the economy and the rural areas it serves across 26 counties in northwestern, central and southwestern Pennsylvania.

The healthcare system owns and operates Penn Highlands Mon Valley in Carroll Township and Penn Highlands Connellsville.

He talked about the reimbursement mix for the nine hospitals in the Penn Highlands Health care system and how each facility relies on targeted federal support to remain viable.

“Our entire rural health care system is built on the foundation of government payer support and enhanced reimbursement programs; without them, we would be forced to make unacceptable tradeoffs such as cutting services, reducing staff or walking away from communities that have no other alternatives,” Fontaine told the audience of congressional staff and industry stakeholders.

He outlined how the challenges facing health care are significant and growing.

“While Penn Highlands Healthcare offers several services that generate positive margins, many other essential services are delivered at a financial loss in order to meet the needs of our communities,” Fontaine explained. “The current trajectory is not sustainable. We are constantly forced to make difficult decisions such as which services we can afford to continue offering.”

Fontaine presented a call to action for Congress and federal agencies. He urged them to:

• Adequately fund Medicare and Medicaid programs ensuring reimbursements reflect the true cost of rural care.

• Protect and preserve the federal government’s 340B Drug Pricing Program, which allows eligible hospitals and clinics which typically serve vulnerable or rural populations to purchase outpatient drugs at significantly reduced prices from manufacturers.

• Expand grant opportunities for rural health infrastructure allowing systems such as Penn Highlands Healthcare to innovate, invest and sustain vital access.

“Our hospitals are not just providers of care — they are lifelines for our communities, anchors of local economies and vital support systems for our most vulnerable populations,” Fontaie said. “Without immediate and sustained support, the services we provide are at risk. The financial pressures, workforce shortages, regulatory burdens and policy challenges we face are not just numbers on a balance sheet — they represent real people, families and communities that depend on us.”

Penn Highlands Healthcare has approximately 6,200 employees in more than 150 locations throughout 26 counties in Pennsylvania.