UPMC Shows Strong Financial Results Through First Half of Fiscal Year 2015 in the Midst of Evolving Competitive Market
- UPMC’s operating revenues grew to $5.8 billion, with operating income of $177 million and a net income of $141 million.
- UPMC’s operating EBIDA – or cash flow income – was $408 million.
- UPMC Health Plan total membership increased to more than 2.5 million as of Jan.1, 2015.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $200 million in the first half.
- UPMC’s $69 million pension contribution maintains its funded status and protects employees’ retirement plans.
PITTSBURGH, Feb. 5, 2015 – In the midst of a rapidly evolving and competitive market, UPMC showed strong financial performance through the first half of fiscal year 2015.
UPMC’s operating revenues increased to $5.8 billion for the first half, due primarily to growth in insurance services. Operating income, which is reinvested in programs that support UPMC’s mission, was $177 million for the period ending December 31, 2014. UPMC’s excess of revenues over expenses (net income) was $141 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 $408 million.
UPMC Health Plan has more than 2.5 million subscribers as of Jan. 1, 2015, growing 11 percent since Jan. 1, 2014. Physician revenue increased by 5 percent, and the number of employed physicians grew 2 percent to 3,568. In a continuously shrinking market, UPMC’s outpatient revenue and inpatient volume remained flat.
“As predicted, the region’s healthcare market continues to evolve and contract while competition among providers and insurers continues to intensify,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer. “For consumers and businesses, this has resulted in Pittsburgh having some of the lowest health insurance costs in the nation for the highest quality of care.”
During the first half of fiscal year 2015, UPMC spent $200 million on capital expenditures and business investments to advance its unwavering commitment to provide clinical excellence, good science, smart technology and accountable care to all the communities it serves.
As Pennsylvania’s largest non-governmental employer, UPMC maintains its commitment to ensuring that the retirement plans of its more than 60,000 employees system-wide are fully funded and contributed $69 million to its pension plans.
UPMC’s diversified investment reserve portfolio stands at $4.3 billion. “UPMC maintains a long-term investment strategy, which has kept us prepared for the challenging and evolving marketplace,” said C. Talbot Heppenstall Jr., UPMC executive vice president, treasurer and president – UPMC Enterprises.
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 $887 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 nongovernmental employer in Pennsylvania, UPMC integrates more than 60,000 employees, more than 20 hospitals, 400 doctors’ offices and outpatient sites, a more than 2.5-million-member health insurance division, and international and commercial operations. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC ranks No. 12 in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals — and No. 1 in Pennsylvania. For more information, go to UPMC.com.