UPMC’s Financial Results For Fiscal Year 2011 Allow Continuing Support for Clinical Excellence, Job Growth and Reinvestment for Future of Medicine in the Region
- UPMC’s operating revenues grew by $955 million to $9 billion, with an operating income up $166 million to $406 million.
- UPMC’s operating EBIDA – or cash flow income – of $801million is up from $630 million at this time last year, exceeding $500 million for the seventh consecutive year.
UPMC’s $3.6 billion diversified investment reserve portfolio provides for long-term sustainability.
- UPMC continues to grow and invest in the region, with $450 million in capital expenditures and 1,900 new jobs created during fiscal year 2011.
- UPMC’s financial strength supports clinical excellence, job growth and reinvestment for future of medicine and the region.
PITTSBURGH, Aug. 27 – UPMC’s continued strong financial results through fiscal year 2011 allow UPMC to continue providing clinical excellence, job growth and reinvestment for the future of medicine and the region. UPMC today released the details of its financial results for fiscal year 2011, ending June 30.
UPMC’s operating revenues increased by $955 million to $9 billion for the fiscal year. Operating income grew by $166 million to $406 million. Rating agency operating income increased from $118 million to $275 million for the year, which equates to a 3.1 percent rating agency margin.
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 $801 million, up from $630 million at this time last year, exceeding $500 million for the seventh consecutive year.
During fiscal year 2011, UPMC spent $450 million in capital expenditures to enhance patient care and clinical excellence through new technology, hospital and other facility construction and renovations, and reinvestment into new programs for the residents of western Pennsylvania and beyond. UPMC’s growth and financial strength resulted in the creation of 1,900 new jobs during the year. UPMC expects to create approximately another 1,900 new jobs during fiscal year 2012.
“We continue to grow and invest,” said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. “Our financial position allows us to advance our nationally recognized clinical excellence, growing our services to meet the needs of our local communities and, at the same time, reinvesting in research and innovation to improve health care now and into the future.”
“It is important to note that UPMC’s rating agency operating margin of 3.1 percent is below the median for our AA-rated peer group. UPMC must continue operating efficiently and further improve our margins to meet the increasing challenges of health care reform, global economic pressures and anticipated declining reimbursements,” Mr. DeMichiei added.
UPMC’s key operating metrics were up compared to the same period a year ago. Outpatient revenue was up 29 percent; UPMC Health Plan membership grew 9 percent to nearly 1.6 million subscribers; hospital admissions and observation cases increased by 6 percent; and physician revenue increased by 4 percent. The number of employed physicians grew 6 percent.
UPMC’s diversified investment reserve portfolio stands at $3.6 billion, having achieved an 18.3 percent return for the fiscal year. “Because we have continued our preparedness to address the lingering uncertain economy and health care reform, UPMC does not need to draw on its long-term reserves to fund day-to-day operations, capital expenditures or employee pension investments,” said C. Talbot Heppenstall Jr., UPMC senior vice president and treasurer. “UPMC maintains a long-term investment perspective.”
UPMC is a $9 billion global health enterprise with more than 50,000 employees headquartered in Pittsburgh, Pa., and is transforming health care by integrating more than 20 hospitals, 400 doctors’ offices and outpatient sites, a health insurance services division, and international and commercial services. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC is redefining health care by using innovative science, technology and medicine to invent new models of accountable, cost-efficient and patient-centered care. For more information on how UPMC is taking medicine from where it is to where it needs to be, go to the "About Us" section.