UPMC Announces Fiscal Year 2010 Financial Results
- UPMC’s operating revenue grew by $325 million to $8 billion, with operating income of $240 million.
- UPMC’s operating EBIDA – or cash flow income – of $630 million is up from $576 million at this time last year, exceeding $500 million for the sixth consecutive year.
- UPMC’s $3.1 billion diversified investment reserve portfolio provides for long-term sustainability.
- UPMC’s strong balance sheet and prudent fiscal management in the midst of economic and health care reform pressures allows it to be as well-positioned as any health care institution in the U.S.
PITTSBURGH, Aug. 27 – UPMC today reported its financial results for fiscal year 2010, showing continuing strength in the ability to maintain key fiscal and operational measures. Since this time last year, UPMC’s operating revenue grew by $325 million to $8 billion. Operating income increased by $28 million to $240 million. Earnings before interest, depreciation and amortization (EBIDA) – a key measure of financial performance and the ability to generate resources for reinvestment – were $630 million for the fiscal year ending June 30, 2010, marking the sixth consecutive year EBIDA has exceeded $500 million.
“Although UPMC’s financial results show that we are as well-positioned as any health care system in the country, we remain concerned about the impact of a slow global economic recovery and persistently high unemployment rates as well as excess costs and overcapacity in the health care sector,” said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. “In the midst of uncertainty associated with health care reform, this represents a continuing challenge for even the best prepared systems.”
UPMC’s core operations remained solid in fiscal year 2010. Total admissions and observation cases approximated the prior year while outpatient activity rose 3 percent. Enrollment in UPMC’s insurance services grew 5 percent to 1.46 million members. The number of employed physicians increased by 3 percent to 2,728.
UPMC’s diversified investment reserve portfolio stands at $3.1 billion. “Because we were well prepared to address the uncertain economy and health care reform, UPMC does not need to draw on its long-term reserves to fund day-to-day operations or capital expenditures,” said C. Talbot Heppenstall, Jr., UPMC senior vice president and treasurer.
UPMC Benefits Patients, Employees and the Community
UPMC reinvests hundreds of millions annually in information technology and facilities to continuously enhance the world-class patient care it delivers throughout its network of hospitals and clinical care sites. These capital expenditures also generate about 2,000 construction jobs annually and make UPMC’s average age of plant 7.6 years, one of the lowest in the nation and indicative of UPMC’s ongoing commitment to reinvestment in facilities and technology.
The region’s largest employer, UPMC is committed to ensuring that its employees’ retirement plans are fully funded, and in August, UPMC contributed $135 million to its pension plans. Also, UPMC announced in June the restoration of the 1 percent reduction in employer matching contributions to the UPMC Savings Plan it had initiated in July 2009.
UPMC provides more than $500 million in community benefits each year. An independent analysis of 17 academic medical centers and 10 regional health systems across the country ranks UPMC near the top in community contributions.
“When you look at how we serve our local communities beyond our role as the leading provider of health care services, it is clear that no other academic medical center does as much for its region as UPMC does for Pittsburgh,” added DeMichiei.
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 almost 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, and Japan. Learn more about UPMC here.