Navigate Up

UPMC/University of Pittsburgh Schools of the Health Sciences
For Journalists
Vice President & Chief Communications Officer, Public Relations
Telephone: 412-647-6647
Other Inquiries

Additional Resources

Unaudited Quarterly Disclosure Statement
For the period ended September 30, 2012

First quarter of FY2013 financial results
Support Slides

 

Continued Preference for UPMC's Clinical Excellence and Insurance Products are Reflected in UPMC's Strong Financial Results for First Quarter of Fiscal Year 2013

  • UPMC’s operating revenues grew by $39 million to $2.5 billion, with an operating income of $72 million.
  • UPMC’s operating EBIDA – or cash flow income – of $175 million is on target to exceed $700 million for the third consecutive fiscal year.
  • UPMC continues to advance patient care in the region, investing $135 million in capital expenditures and $135 million to fully fund employees’ pensions during the first three months of fiscal year 2013.

PITTSBURGH, Nov. 8, 2012 – Continuing preference by patients, physicians and employers for UPMC’s clinical services and insurance products is reflected in UPMC’s strong financial results and increased UPMC Health Plan membership for the first three months of fiscal year 2013.

UPMC’s operating revenues increased by $39 million to $2.5 billion for the first quarter. Operating income for the three months ended September 30, 2012 decreased $83 million over the same period in the prior fiscal year. The prior year operating income of $155 million benefitted from $39 million of non-recurring activity, including $28 million in additional meaningful use revenue over the same period in the current fiscal year. The remaining $44 million decline in operating income is due mainly to $25 million in increased physician investment, a $15 million decline related to commercial insurance rate compression, and general expense inflation, which more than offset an increase in revenue growth for Provider Services volume and Insurance Services enrollment.

For the first quarter of fiscal year 2013, 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 $175 million and are on target to exceed $700 million for fiscal year 2013. During the first three months of fiscal year 2013, UPMC spent $135 million in capital expenditures to advance clinical excellence through new technology, hospital and other facility construction and renovations, and reinvestment into new patient programs. As Pennsylvania’s largest employer, UPMC is committed to ensuring that its employees’ retirement plans are fully funded and contributed $135 million to its pension plans.

"Our financial position allows us to continue successfully growing and reinvesting to meet the needs of western Pennsylvania and communities beyond," said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. "In a challenging marketplace, we are able to run operations efficiently and provide high-quality clinical care in the midst of global economic challenges and planning for the future."

UPMC’s key operating metrics were up compared to the same period a year ago. UPMC Health Plan membership was up 18 percent. In a shrinking market with declining reimbursements, outpatient revenue was up 7 percent and inpatient volume increased by 4 percent. Physician revenue increased by 6 percent. UPMC’s reputation for research advancements and accountable patient care allows it to attract physicians from around the world, nation and region as the number of employed physicians grew 12 percent.

UPMC’s diversified investment reserve portfolio stands at $3.9 billion, with a 3.7 percent return for the first quarter. UPMC maintains a long-term investment perspective. "Because of prudent leadership, we have prepared to address factors related to health care reform and other 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.

About UPMC

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, go to UPMC.com.

©  UPMC | Affiliated with the University of Pittsburgh Schools of the Health Sciences
Supplemental content provided by A.D.A.M. Health Solutions. All rights reserved.

For help in finding a doctor or health service that suits your needs, call the UPMC Referral Service at 412-647-UPMC (8762) or 1-800-533-UPMC (8762). Select option 1.

UPMC is an equal opportunity employer. UPMC policy prohibits discrimination or harassment on the basis of race, color, religion, ancestry, national origin, age, sex, genetics, sexual orientation, marital status, familial status, disability, veteran status, or any other legally protected group status. Further, UPMC will continue to support and promote equal employment opportunity, human dignity, and racial, ethnic, and cultural diversity. This policy applies to admissions, employment, and access to and treatment in UPMC programs and activities. This commitment is made by UPMC in accordance with federal, state, and/or local laws and regulations.

Medical information made available on UPMC.com is not intended to be used as a substitute for professional medical advice, diagnosis, or treatment. You should not rely entirely on this information for your health care needs. Ask your own doctor or health care provider any specific medical questions that you have. Further, UPMC.com is not a tool to be used in the case of an emergency. If an emergency arises, you should seek appropriate emergency medical services.

For UPMC Mercy Patients: As a Catholic hospital, UPMC Mercy abides by the Ethical and Religious Directives for Catholic Health Care Services, as determined by the United States Conference of Catholic Bishops. As such, UPMC Mercy neither endorses nor provides medical practices and/or procedures that contradict the moral teachings of the Roman Catholic Church.

© UPMC
Pittsburgh, PA, USA UPMC.com