UPMC’s Strong Financial Results Through Fiscal Year 2017 Support UPMC’s Commitment to Clinical Excellence and Community Benefits
UPMC Fiscal Year 2017 Results:
- Operating revenues grew to $14 billion.
- Net income reaches $991 million while community benefits approach $1 billion; $30 billion economic impact.
- UPMC Insurance Services Division is the largest medical insurer in western Pennsylvania, with 3.2 million members.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $589 million.
- $6 billion cash and investments provides for long-term sustainability.
PITTSBURGH, Aug. 30, 2017 — UPMC ended Fiscal Year 2017 with continued strong financial results that support its nationally recognized clinical excellence mission as well as its leadership in providing community benefits and caring for a disproportionate share of the region’s vulnerable population.
For the Fiscal Year, ended June 30, 2017, UPMC’s operating revenues increased to $14 billion. Net income totaled $991 million, driven by strong operating and investing results, and augmented by the affiliation with UPMC Susquehanna, reflecting Susquehanna’s strong financial position being consolidated into UPMC operations.
Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $240 million. UPMC’s Insurance Services Division—the largest medical insurer in western Pennsylvania—has 3.2 million subscribers. UPMC’s admissions and observations increased 9 percent.
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 $732 million.
UPMC spent $589 million on capital expenditures and business investments as it continues to make significant advancements in facilities, equipment, technology, education and operational strategies to enhance patient care.
In August 2017, for the 18th year, UPMC was named to the U.S. News & World Report Best Hospitals Honor Roll, and Children’s Hospital of Pittsburgh of UPMC was named to the U.S. News & World Report Best Children’s Hospitals Honor Roll for the eighth year.
“Being one of only 20 hospitals nationwide to make the Best Hospitals Honor Roll is a testament to UPMC’s firm commitment and success in providing high-quality patient care with some of the country’s best clinical specialists and support teams,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer.
“We are equally committed to addressing the most pressing needs of the many diverse communities we serve,” said DeMichiei. “UPMC provides more care to the region’s poor and underserved than any other health system in Pennsylvania. On a national level, UPMC’s community contributions exceed those of other top medical centers in terms of percentage of net patient revenue.”
The newly published 2016-2017 UPMC Community Benefits Report describes how UPMC provided $912 million in IRS-defined community benefits during Fiscal Year 2016, the most recent data available. Including UPMC Susquehanna and UPMC Chautauqua, both of which affiliated with UPMC in the past year, makes UPMC’s annual community benefits $960 million—or $2.6 million a day.
The report also shows UPMC’s $30 billion economic impact. As Pennsylvania’s largest non-governmental employer, UPMC supports more than one in five hospital jobs in the Commonwealth. UPMC maintains its assurance that the retirement plans of its nearly 70,000 employees system-wide are fully funded with a $262 million contribution to its pension plans.
A $14 billion world-renowned health care provider and insurer, Pittsburgh-based UPMC is inventing new models of patient-centered, cost-effective, accountable care. UPMC provides more than $900 million a year in benefits to its communities, including more care to the region’s most vulnerable citizens than any other health care institution. The largest nongovernmental employer in Pennsylvania, UPMC integrates nearly 70,000 employees, more than 25 hospitals, 600 doctors’ offices and outpatient sites, and a 3.2 million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. As UPMC works in close collaboration with the University of Pittsburgh Schools of the Health Sciences, U.S. News & World Report consistently ranks UPMC on its annual Honor Roll of America’s Best Hospitals. UPMC Enterprises functions as the innovation and commercialization arm of UPMC, and UPMC International provides hands-on health care and management services with partners on four continents. For more information, go to UPMC.com.