UPMC Announces Strong Financial Results For Fiscal Year 2009
- UPMC’s operating revenue grew by $653 million to $7.7 billion, with operating income of $213 million.
- UPMC’s operating EBIDA – or cash flow income – of $577 million is up from $513 million at this time last year, exceeding $500 million for the fifth consecutive year.
- UPMC’s $2.8 billion diversified investment reserve portfolio results reflect overall market, but outperforms S&P500 for the fiscal year.
- UPMC’s strong balance sheet and prudent fiscal management allow it to continue investing in the future of the global health enterprise, its facilities and the western Pennsylvania region.
PITTSBURGH, Pa., Aug. 28 — UPMC’s strong financial results for fiscal year 2009, released today, are the result of the global health enterprise’s continued strength and ability to manage through difficult economic challenges while still delivering outstanding patient care and remain the region’s lead economic driver.
Since this time last year, UPMC’s operating revenue grew by $653 million to $7.7 billion. Operating income increased by $29 million to $213 million. Earnings before interest, depreciation and amortization (EBIDA) – a key measure of financial performance and the ability to generate resources for reinvestment – were $577 million for the fiscal year ending June 30, 2009, marking the fifth consecutive year EBIDA has exceeded $500 million.
“UPMC’s outstanding financial results for this fiscal year are, in part, based on management actions identified and taken in 2008,” said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. “The continued weakness in the economy represents a significant challenge to UPMC to sustain our financial performance. We are continuously evaluating our operational efficiencies and opportunities to integrate and consolidate functions based on the needs of the community and advances in technology.”
UPMC’s core operations showed solid growth in fiscal year 2009. Total admissions at UPMC’s 20 hospitals grew 3 percent to 187,685, while outpatient activity rose 8 percent. Enrollment in UPMC’s insurance services grew 9 percent to 1,389,331 members. The number of employed physicians increased by 7 percent to 2,656.
UPMC’s diversified investment reserve portfolio stands at $2.8 billion. “Because we were solidly profitable in operating and cash flow income and took swift actions to address the deteriorating economy and its effects on the health care sector, we did not need to draw on these long-term reserves to fund day-to-day operations or capital expenditures,” said C. Talbot Heppenstall, Jr., UPMC senior vice president and treasurer.
UPMC is an $8 billion integrated global health enterprise headquartered in Pittsburgh, Pennsylvania, and one of the leading nonprofit health systems in the United States. As western Pennsylvania’s largest employer, with 50,000 employees, UPMC is transforming the economy of the region into one based on medicine, research and technology. By integrating 20 hospitals, 400 doctors’ offices and outpatient sites, long-term care facilities and a major health insurance services division, and in collaboration with its academic partner, the University of Pittsburgh Schools of the Health Sciences, UPMC has advanced the quality and efficiency of health care and developed internationally renowned programs in transplantation, cancer, neurosurgery, psychiatry, orthopaedics and sports medicine, among others. UPMC is commercializing its medical and technological expertise by nurturing new companies, developing strategic business relationships with some of the world’s leading multinational corporations and expanding into international markets, including Italy, Ireland, the United Kingdom, Cyprus and Qatar. For more information about UPMC, visit our website at www.upmc.com.