Navigate Up

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

Additional Resources

Unaudited Quarterly Disclosure Statement
For the period ending March 31, 2013

First nine months of FY2013 financial results
Support slides


UPMC’s Financial Results for First Nine Months of Fiscal Year Continue to Reflect Changing Health Care Market

  • UPMC’s operating revenues grew by $368 million to nearly $7.6 billion, with an operating income of $146 million. Net income of $417 million reflects positive investment returns.
  • UPMC’s operating EBIDA – or cash flow income – was $462 million.
  • UPMC Health Plan total membership grew 16% and now exceeds 2.1 million.
  • UPMC continues to advance patient care in the region, investing $394 million in capital expenditures and business investments.
  • UPMC’s continued commitment to the region is evident in its $622 million in community benefits for fiscal year 2012 and $3.2 billion over the past five years, vastly exceeding all requirements for tax-exempt status.

PITTSBURGH, May 10, 2013 – UPMC’s financial results for the first nine months of fiscal year 2013 continue to reflect the changing health care market. UPMC Health Plan membership keeps increasing at double-digit rates while UPMC’s provider services growth continues to flatten.

UPMC’s operating revenues increased by $368 million to nearly $7.6 billion for the first nine months, due primarily to growth in insurance services. Operating income was $146 million.

For the first nine months of fiscal year 2013, 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 $462 million. Net income of $417 million, reflecting positive investment returns, compares with $234 million in net income for the same period a year ago.

"We continue to see the impact of a supra-competitive insurance market, lower reimbursement and insurance-forced lower utilization," said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. "UPMC remains strongly positioned to continue reinventing itself to meet the needs of our region. We continue to re-invest in good science, smart technology, and the re-design of patient care pathways that deliver health care quality and value over volume."

UPMC Health Plan membership keeps growing at double-digit rates and now exceeds more than 2.1 million. Total membership increased by 16 percent. In January 2013, A.M. Best upgraded UPMC Health Plan to "A- (Excellent)" from "B+ (Good)".

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 and inpatient volume both were up 4 percent, and physician revenue increased by 6 percent. UPMC’s reputation for clinical and research advancements and accountable patient care allows it to attract physicians from around the world, nation and region as the number of employed physicians grew 4 percent to 3,394.

During the first nine months of fiscal year 2013, UPMC spent $394 million in capital expenditures and business investments to advance clinical excellence, good science, smart technology and accountable care.

UPMC’s diversified investment reserve portfolio stands at $4.0 billion, with a 9.4 percent return for the first nine months of fiscal year 2013. UPMC maintains a long-term investment perspective. "Our long-term investment strategy continues to help us prepare for factors related to health care reform and other economic pressures," said C. Talbot Heppenstall Jr., UPMC senior vice president and treasurer.

Commercializing UPMC's Intellectual Capital

Operating income for the nine-month period included a $53 million gain from the sale in March 2013 of partner dbMotion to Allscripts. In total, UPMC received $67.8 million in proceeds on its $30.5 million investment in dbMotion, whose interoperability solution seamlessly brings together patient data from across UPMC to improve the delivery of care. At the time of the sale, UPMC’s stake in dbMotion had a book value of approximately $15 million. "The company’s sale to Allscripts validates UPMC’s strategy of collaborating with industry partners to create and prove technology that solves pressing problems in health care," said Charles E. Bogosta, UPMC executive vice president and president, International and Commercial Services Division and UPMC CancerCenter.

About UPMC

UPMC is a $10 billion global health enterprise with more than 55,000 employees headquartered in Pittsburgh, Pa., and is transforming health care by integrating more than 20 hospitals, 400 doctors’ offices and outpatient sites, a health insurance services division, and international and commercial services. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC ranked No. 10 in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals in 2012—and No. 1 in Pennsylvania—with 15 adult specialty areas ranked for excellence. UPMC is redefining health care by using innovative science, technology and medicine to invent new models of accountable, cost-efficient and patient-centered care. For more information, go to


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 |