Navigate Up

UPMC/University of Pittsburgh Schools of the Health Sciences
Senior Director
Telephone: 412-586-9777
Patients and medical professionals may call 1-800-533-UPMC (8762) for more information.

Unaudited Quarterly Disclosure Statement 

For the period ending 
December 31, 2007 

Adobe Reader required to download PDF files.

Download the free version of Adobe Acrobat Reader.

UPMC Reports Growing Revenue for First Half of Fiscal Year 2008; Strong Cash Flow Income Ensures Continuing Investments in New Programs and Community

PITTSBURGH , February 14, 2008 — Increasing patient volumes and a larger number of insurance services members boosted operating revenues 11 percent to $3.37 billion for the six months ended Dec. 31, 2007, the University of Pittsburgh Medical Center (UPMC) reported today. Due to higher depreciation resulting from extensive capital investments and its commitment to the Pittsburgh Promise scholarship program for city high school students, UPMC’s operating income was $100 million for the six months compared to $124 million for the period ended Dec. 31, 2006.

UPMC continued to attract increasing numbers of patients, both in its hospitals and at outpatient locations. Inpatient activity as measured by medical-surgical admissions was up 2 percent for the six months vs. the year-ago period. Outpatient activity rose 4 percent, while physician service revenue—measured by average revenue per workday—increased 11 percent. Enrollment in UPMC’s insurance services grew 26 percent to more than 1.2 million members.

“Even in a challenging health care environment, UPMC continues to show strength in its core operations,” said Senior Vice President and Chief Financial Officer Robert DeMichiei. “Our substantial revenue growth allows us to maintain our significant investments in physician recruitment, technology and state-of-the-art infrastructure, as well as to honor our commitments to the community.” In December, UPMC pledged an initial $10 million to the Pittsburgh Promise to help Pittsburgh Public School graduates with post-secondary education, along with an additional $90 million challenge grant intended to spur matching contributions from others in the community. 

One key measure of UPMC’s financial performance, operating earnings before interest, depreciation and amortization (EBIDA), was solid at $260 million in the six-month period. “As this EBIDA measure demonstrates, UPMC is able to consistently generate the resources it needs to provide the highest-quality patient care while investing in the future of the health system and the region,” said Mr. DeMichiei, who noted that UPMC added 642 full-time employees during this period.

Lower returns in the financial markets compared to last year and an accounting change in the prior period led to a reduction in UPMC’s investment income, from $220 million to $3 million in the most recent period. The latest results reflect a 2.7 percent return on UPMC’s investment portfolio vs. 9.8 percent in the year-ago period. To provide a more accurate and timely picture of its investment activity, UPMC last year began to reflect all changes in the market prices of its investments in its earnings statement, even though UPMC may not have realized actual gains or losses on the underlying securities. “Current market conditions have not changed our commitment to maintain a well-diversified investment portfolio, which we expect to outperform comparable market returns over the long-term,” said UPMC Senior Vice President and Treasurer C. Talbot Heppenstall Jr.

Net income, which includes both investment and operating income, totaled $101 million for the latest six-month period, compared with $342 million in the prior year.

UPMC invested $243 million in capital expenditures during the latest six months, up from $231 million in the prior period. Capital spending for the full fiscal year remains on track to exceed $590 million. Major projects include the ongoing construction of the new Children’s Hospital in Lawrenceville, the re-engineering of information technology infrastructure and investments in various patient care software applications.

UPMC | Affiliated with the University of Pittsburgh Schools of the Health Sciences Supplemental content provided by Healthwise, Incorporated. To learn more, visit

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, gender identity, 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 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, is not a tool to be used in the case of an emergency. If an emergency arises, you should seek appropriate emergency medical services.

Pittsburgh, PA, USA |