UPMC's First-Quarter Financial Results Show Continued Strength in the Face of an Uncertain Economy
- UPMC's operating revenues increased by $101 million to $2 billion, with operating income of $65 million for this quarter.
- UPMC's operating EBIDA – or cash flow income – of $163 million is on target to exceed $600 million for fiscal year 2010.
- UPMC's diversified portfolio of $2.9 billion increased 8.6% for this quarter, reflecting the overall market.
- UPMC's continued strong balance sheet and efficient management ensures its ability to continue providing quality care in an uncertain economy.
PITTSBURGH, Pa., Nov. 13, 2009 — In the face of a challenging economic environment, UPMC's strong financial results for the first quarter of fiscal year 2010 reflect the global health enterprise's continued financial strength and ability to provide the highest-quality, most cost-effective, patient-focused health care available in the region.
During this fiscal year's first quarter (July through September 2009), UPMC's operating revenue grew by $101 million to $2 billion, coinciding with a compound annual growth rate of 10 percent over the last five years and a nearly 50 percent growth since 2006. UPMC's operating income for this quarter was $65 million, up slightly from this time last year.
UPMC's earnings before interest, depreciation and amortization (EBIDA) – a key measure of financial performance and the ability to generate the necessary resources for reinvestment – were $163 million for this quarter and are on target to exceed $600 million for fiscal year 2010.
"Our proactive approach to prudent cost management has allowed UPMC to continue operating from a position of strength, providing health care that is both effective and efficient in an adverse economy," said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. "While the global economy's future is still uncertain, UPMC is well-positioned to deal with the external challenges, run its operations, fund capital expenditures and employee pension obligations, while creating new programs for the residents of western Pennsylvania."
UPMC's key operating metrics were up: Enrollment in UPMC's insurance services grew 8.5 percent to 1.4 million members, outpatient activity rose 3 percent, physician services activity increased 11 percent, and the number of employed physicians grew to 2,700. Total admissions for the quarter were down 2.5 percent compared to the same period year-ago.
UPMC's diversified investment reserve portfolio stands at $2.9 billion, an 8.6 percent increase for the quarter. "It is important to note that investment portfolio values change as the market fluctuates, and UPMC has a long-term investment perspective," said C. Talbot Heppenstall, Jr., UPMC senior vice president and treasurer.
About UPMC
UPMC is an $8 billion integrated global health enterprise headquartered in Pittsburgh, Pennsylvania, and is one of the leading nonprofit health systems in the United States. As western Pennsylvania's largest employer, with 50,000 employees, UPMC is transforming the economy of the region into one based on medicine, research, and technology. By integrating 20 hospitals, 400 doctors' offices and outpatient sites, long-term care facilities, and a major health insurance services division, and in collaboration with its academic partner, the University of Pittsburgh Schools of the Health Sciences, UPMC has advanced the quality and efficiency of health care and developed internationally renowned programs in transplantation, cancer, neurosurgery, psychiatry, orthopaedics, and sports medicine, among others. UPMC is commercializing its medical and technological expertise by nurturing new companies, developing strategic business relationships with some of the world's leading multinational corporations, and expanding into international markets, including Italy, Ireland, the United Kingdom, Cyprus, Qatar, and Japan. Learn more about UPMC.