UPMC's Financial Results for Fiscal Year 2012 Reflect Growing Preference For Its Clinical Excellence and Insurance Products
- UPMC’s strong financial results and its highest-ever U.S. News & World Report ranking for clinical excellence are a result of the growing preference by patients, physicians and businesses for UPMC services.
- UPMC’s operating revenues grew by $834 million to $9.6 billion, with an operating income of $351 million.
- UPMC’s operating EBIDA – or cash flow income – is $746 million, exceeding $500 million for the eighth consecutive year.
- UPMC continues to advance patient care and reinvest in the region, with $618 million in capital expenditures during fiscal year 2012.
PITTSBURGH, Aug. 23 – UPMC’s strong financial results through fiscal year 2012 reflect the growing preference for UPMC’s clinical services and insurance products. UPMC’s continued clinical excellence is recognized by U.S. News & World Report, which ranks UPMC among the top 10 medical centers in the nation and as the best in Pennsylvania.
UPMC’s operating revenues increased by $834 million to $9.6 billion for the fiscal year. Operating income was $351 million. 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 $746 million, exceeding $500 million for the eighth consecutive year.
UPMC’s key operating metrics were up compared to the same period a year ago. UPMC Health Plan membership was up 15 percent. In a shrinking market, outpatient revenue was up 13 percent and hospital admissions and observation cases increased by 8 percent. Physician revenue increased by 8 percent. UPMC’s reputation for research advancements and accountable patient care allows it to attract physicians from around the world, nation and region; the number of employed physicians grew 12 percent.
During fiscal year 2012, UPMC spent $618 million in capital expenditures to advance 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 financial strength gives us the ability to continuously re-invest in state-of-the-art technologies and the region’s best doctors, and has driven us to our highest-ever ranking on the U.S. News & World Report annual Honor Roll of America’s Best Hospitals," said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. "Our results for the fiscal year mirror the growing preference by patients, physicians and businesses for UPMC.
"As we grow and invest in top-quality services for our patients and community, it is important that UPMC continues to operate efficiently in order to keep providing the best in patient care while meeting the increasing challenges of health care reform, other global economic pressures and declining reimbursements," Mr. DeMichiei added.
UPMC’s diversified investment reserve portfolio stands at $3.7 billion, with a 0.4 percent return for the fiscal year. UPMC maintains a long-term investment perspective. "Because we have continued our preparedness to address factors related to health care reform and other global economic pressures, 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 is a $10 billion global health enterprise with more than 55,000 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 ranked No. 10 in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals in 2012—and No. 1 in Pennsylvania—with 15 adult specialty areas ranked for excellence. 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.