With Strong Financial Results, UPMC Maintains Reinvestment in Clinical and Scientific Innovation
- Operating revenues grew to $3 billion, with operating income of $72 million.
- UPMC’s operating EBIDA – or cash flow income – was $186 million.
- UPMC Health Plan total membership increased 19% to 2.8 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $80 million, providing $22 million in charity care.
- UPMC’s $89 million pension contribution maintains its funded status and protects employees’ retirement plans.
- $4.3 billion investment reserve portfolio provides for long-term sustainability.
PITTSBURGH, Nov. 5, 2015 – UPMC’s strong financial results for the first quarter of fiscal year 2016 allows western Pennsylvania’s leading health care provider to continue reinvesting in its world-class clinical care and scientific innovation to address the region’s health care needs into the future.
“Our strong financial performance reflects UPMC’s ongoing ability to invest in our commitment to provide clinical excellence, good science, smart technology and accountable care to all the communities we serve. In the first quarter, we spent $80 million on capital expenditures and business investments to advance patient care while providing $22 million in charity care,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer. Over the last 10 years, UPMC has reinvested more than $5 billion to upgrade its technology, facilities and infrastructure, all toward ensuring top-quality care and the best patient experience.
For the first three months of the fiscal year, UPMC’s operating revenues increased to $3 billion, due primarily to growth in insurance services and health services. Operating income, which is reinvested in programs that support UPMC’s mission, was $72 million for the period ending September 30, 2015.
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 $186 million, on track to exceed $500 million for the 12th consecutive year.
UPMC Health Plan now has 2.8 million subscribers, growing 19 percent since this time last year.
As Pennsylvania’s largest non-governmental employer, UPMC maintains its commitment to making sure that the retirement plans of its 60,000 employees system-wide are fully funded and contributed $89 million to its pension plans.
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 $888 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, more than 500 doctors’ offices and outpatient sites, a 2.8-million-member health insurance division, and international and commercial operations. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC ranks No. 13 in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals. For more information, go to UPMC.com.