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On any given day, UPMC
  • Admits 700 patients
  • Delivers 40 babies
  • Cares for 1,650 patients in our emergency departments
  • Has more than 10,000 outpatient visits
  • Performs 500 surgeries, 375 MRIs, and 1,300 CTs
  • Provides jobs for more than 62,000 people as the largest non-governmental employer in the state

UPMC is a large organization, and it looks like we earn a lot of money. That is true, but with our big company comes big expenses — all to provide and maintain the facilities and services to take care of the people in our communities. Yes, UPMC is nonprofit, which means money that we earn is plowed right back into our services. It doesn't go into shareholders' pockets, like revenue from a for-profit company.

When you think about UPMC's nonprofit status and our contributions to the community, look at the bottom line.

Do the math.

All of these numbers mean that UPMC generates a lot of revenue,
which has some people questioning: Since UPMC is a nonprofit,

where does the money go?

Right back to care for our patients,
members, and the communities we serve.


Here’s the math:


operating revenue

$9.6 Billion

the money we are paid to
provide care


operating expense

- $9.3 Billion

what it takes to provide services to our patients and the community

 
Where do we spend this money?
 

 

That leaves

$351 Million of
operating income

 
Operating Income is a measurement of the accounting profit of UPMC; it is used as an indicator of efficiency in operations.
 



depreciation expense

+ $395 Million
 
And we add back depreciation expense, which is an expense related to the cost of construction projects and equipment purchased in prior years. We benefit from these expenditures for many years, so the expense is spread over a longer period of time and into future years. However, no current year cash is related to this expense.
 

 



Gives us

$746 Million

EBIDA Fiscal Year 2012

 
What is EBIDA?
A fancy acronym for Earnings Before Interest, Depreciation, and Amortization which is an accounting term that is an approximate measure of a company’s operating cash flow – or how much money it has on hand to reinvest in its core business.
 



In fiscal year 2012, we used

- $121 Million

interest expense


then we invested

- $618 Million

in good science,
smart technologies,
and accountable care
to serve our patients

 
How did we reinvest this money?
 

 

That leaves us

$7 Million

that’s less than 1/10th of
1 cent for every $1 in revenue

 
AA-
An amount we need to keep our strong rating,
which demonstrates our credit worthiness.
 

So, where does the money go?
Right back to care for our patients, members, and the communities we serve.

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