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

Patients and medical professionals may call 1-800-533-UPMC (8762) for more information.

Additional Resources


  • UPMC’s operating revenues grew 16 percent during the first quarter, to $1.9 billion, with operating income of $63 million and operating EBIDA of $149 million.
  • $2.8 billion investment reserve portfolio provides for long-term sustainability, despite market conditions.
  • In the face of a deteriorating economy, UPMC moves to improve operational efficiencies and limit the growth of costs to sustain highest-quality patient care.
  • UPMC’s strong balance sheet, cash position and “AA” credit rating allow it to continue investing in the future of the global health enterprise and Western Pennsylvania, as well as in strategic business initiatives to generate future revenue and jobs growth.

PITTSBURGH, Pa., October 24, 2008 – Operating earnings before interest, depreciation and amortization (EBIDA), a key measure of financial performance and the ability to generate resources for reinvestment, are on target to top $500 million for the fifth consecutive fiscal year. Operating EBIDA totaled $149 million in the first quarter, up 6 percent from the year-ago period. Operating EBIDA totaled $149 million in the first quarter, up 6 percent from the year-ago period. At the same time, UPMC is proactively taking the necessary steps to do business in a deteriorating global economy by integrating back-office functions and redesigning programs to improve operational efficiencies. This includes limiting the growth of salary-related expenses, cutting other administrative spending and reducing primarily non-clinical staff. "Despite difficult economic conditions and turmoil in the financial markets, UPMC continues to increase its patient volumes, health plan membership and revenues, while reinvesting in new facilities and life-saving technology," said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. "At the same time, we are taking prudent steps to better leverage the investments we’ve made in people and information technology to ensure the continuation of the highest-quality, most cost-effective, patient-focused health care in the region."

Even with the realignment of staffing, UPMC expects to grow its salary-related expenses by 5 percent this fiscal year and to hire more than 3,000 new employees, with a focus on recruiting physicians and clinical staff. In the first quarter alone, the number of employed physicians grew by 7 percent to 2,621. UPMC’s core operations showed solid growth during the quarter. Total admissions at the system’s 20 hospitals grew 11 percent to 47,470, while outpatient activity rose 14 percent. Enrollment in insurance services grew to nearly 1.3 million members vs. 1.2 million in the same period a year ago. Despite lower returns in the financial markets compared to last year, UPMC’s diversified investment reserve portfolio stands at $2.8 billion. UPMC also maintains its "AA" credit rating, a further indication of its financial strength. "Because we are solidly profitable in operating and cash flow income – and are taking swift actions to prepare for a worsening economy – we do not need to draw on these long-term reserves to fund day-to-day operations or capital expenditures," noted Treasurer and Senior Vice President C. Talbot Heppenstall Jr. For the quarter, the investment reserve portfolio declined by $321 million, predominately an unrealized "paper" loss, due to mark-to-market accounting. The portfolio value is down 11 percent calendar-year-to-date, vs. a 19 percent decline for the Standard & Poor’s 500 index.

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