STATE
PITTSBURGH — Pittsburgh’s second-largest hospital network lost $112 million in the fiscal year that ended June 30, despite a $58 million donation from health insurer Highmark, which is still struggling to buy the network.
The West Penn Allegheny Health System released the numbers Monday, more than doubling the $51.8 million operating loss for fiscal 2011.
Highmark and West Penn had agreed to a $475 million merger — which includes the donation, loans and other financing — until the hospital network pulled out last month objecting to Highmark’s insistence that West Penn file for Chapter 11 bankruptcy first.
The sides are said to still be talking, though West Penn has also said it hopes to find another buyer who won’t insist on the bankruptcy filing.
Parents sue resort, owner over fatalityUNIONTOWN — The parents of a teen passenger killed in a drunken driving crash have sued a posh southwestern Pennsylvania resort, its owner and his daughter for allegedly supplying alcohol to the 17-year-old driver.A spokesman for 84 Lumber founder Joe Hardy, who owns Nemacolin Woodlands Resort, declined comment because the matter is in litigation.A newspaper reports the parents of 17-year-old Zack Nelson filed a wrongful death suit in Fayette County on Tuesday against Nemacolin, Hardy, his daughter, Paige, and the teen who was driving when a car crashed into a tree at the resort in September 2011. Nelson was killed and Paige Hardy and four other teens were hurt.
Senate candidates suspend eventsHARRISBURG — Pennsylvania’s candidates for U.S. Senate are calling off campaign events as the state picks up the pieces left by a powerful storm that knocked out power to more than 1.2 million customers.The campaigns of Republican Tom Smith and Democratic U.S. Sen. Bob Casey said Tuesday they expected to resume political activities later in the week. Their ads continue to run on TV.In the meantime, Casey met with volunteers and residents at a Red Cross shelter in Philadelphia and received a briefing on the storm and cleanup efforts from FEMA Administrator Craig Fugate and Homeland Security Secretary Janet Napolitano. He’s also pushing for federal aid to fix the storm damage.
Mayor will spend year on probationFAYETTE CITY — The mayor of a tiny southwestern Pennsylvania borough will spend a year on probation as part of a first offender’s program for allegedly taking “numbers” bets at a newsstand he owns.Herbert Vargo Jr., 46, the mayor of Fayette City, maintains his innocence and did not have to plead guilty to enter the program Monday. His record will be expunged if he completes the probation without incident.Fayette County prosecutors allege Vargo took his own bets on lottery numbers and paid out winners. State police say they found Vargo’s gambling records and $59,300 in a lockbox under his bed, which they want a judge to make Vargo forfeit.Vargo is contesting that, saying relatives gave him the money for his children’s college education.Fayette City has about 700 residents.
