Financial Results For First Quarter of Fiscal Year Show UPMC Uniquely Positioned to Continue Meeting Community's Needs
- UPMC’s operating revenues grew by $376 million to $2.8 billion, with operating income of $54 million and a net income of $294 million.
- UPMC’s operating EBIDA – or cash flow income – was $167 million.
- UPMC Health Plan total membership now exceeds 2.2 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $104 million in the first quarter.
- UPMC’s $81 million pension contribution maintains its funded status and protects employees’ retirement plans.
PITTSBURGH, Nov. 7, 2013 – UPMC’s financial results for the first quarter of fiscal year 2014 show continued preference for UPMC’s clinical services and insurance products as well as UPMC’s unique position to keep meeting the community’s needs into the future.
UPMC’s operating revenues increased by $376 million to nearly $2.8 billion for the quarter, due primarily to growth in insurance services, the addition of UPMC Altoona and increased patient volumes. Operating income, which is reinvested in programs that support UPMC’s mission, was $54 million for the period ending September 30, 2013. UPMC’s excess of revenues over expenses (net income) was $294 million.
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 $167 million.
“We are encouraged by the strong EBIDA. In a tough environment, we continue to see volume growth and improved performance in provider services, evidence of increasing preference for UPMC’s outstanding clinical care, said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. “While the insurance market is challenging, the increased competition benefits the community.”
UPMC Health Plan membership now exceeds more than 2.2 million subscribers, growing 14 percent since this time last year. UPMC’s other key operating metrics were up compared to the same period a year ago. In a continuously shrinking market with declining reimbursements, UPMC’s outpatient revenue was up 9 percent, physician revenue increased by 6 percent, and inpatient volume was up 1 percent. UPMC has 3,357 employed physicians, up 1 percent, as its reputation for clinical and research advancements and accountable patient care allows it to attract physicians from around the world, nation and region.
During the first quarter, UPMC spent $104 million in capital expenditures and business investments to advance clinical excellence, good science, smart technology and accountable care. As Pennsylvania’s largest non-governmental employer, UPMC maintains its commitment to ensuring that the retirement plans of its 60,000+ employees system-wide are fully funded and contributed $81 million to its pension plans.
On July 1, 2013, Altoona Regional Health System merged with UPMC and became UPMC Altoona, beginning a new era of patient care for the Blair County region. UPMC’s capital commitment of $250 million over 10 years will enhance health care facilities and services for patients and bring outstanding technology, science, innovation and advanced expertise to those communities. UPMC made an additional commitment of $10 million to the hospital’s foundation and has assumed responsibility for all of the hospital’s outstanding debt, pension, and other liabilities. As part of the affiliation, UPMC recorded an inherent contribution of $119 million for the quarter, representing the unrestricted net assets acquired.
UPMC’s diversified investment reserve portfolio stands at $4.2 billion, with a 4.1 percent return for the first quarter. UPMC maintains a long-term investment perspective. “Our long-term investment strategy has helped us prepare for factors related to health care reform and other economic pressures,” said C. Talbot Heppenstall Jr., UPMC senior vice president and treasurer.
A world-renowned health care provider and insurer, Pittsburgh-based UPMC is inventing new models of accountable, cost-effective, patient-centered care. It provides more than $622 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 non-governmental employer in Pennsylvania, UPMC integrates more than 60,000 employees, 20 hospitals, 400 doctors’ offices and outpatient sites, a 2.2-million-member health insurance division, and international and commercial operations. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC ranks No. 10 in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals — and No. 1 in Pennsylvania. Learn more about UPMC by visiting the About UPMC section of our website.