A Newly Competitive and Balanced Health Insurance Market Has Emerged in Western Pennsylvania
UPMC Shows Strong Financial Results for First Half of Fiscal Year 2016
UPMC First Half Fiscal Year 2016 Results:
- Operating revenues grew to $6.3 billion, with operating income of $201 million.
- UPMC’s operating EBIDA – or cash flow income – was $431 million.
- UPMC Health Plan total membership increased 20% to 2.9 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $190 million.
- UPMC’s $89 million pension contribution maintains its funded status and protects employees’ retirement plans.
- $4.5 billion investment reserve portfolio provides for long-term sustainability.
PITTSBURGH, Feb. 19, 2016 – UPMC reports continued strong financial results for the first half of fiscal year 2016, including significant growth in insurance services, helping to further increase choice and competition to benefit the region’s businesses and consumers.
“In 2016, UPMC is celebrating the twentieth anniversary of the establishment of our insurance services division,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer. “As perhaps the nation’s most successful provider-led integrated delivery system, UPMC is able to deliver high-quality, cost-efficient patient care while creating a dynamic, competitive health insurance marketplace for the region.”
“Western Pennsylvania has transformed over the past several years from one of the most highly concentrated, least competitive insurance markets in the nation to one of the most competitive insurance markets,” said Diane P. Holder, UPMC executive vice president and president, UPMC Insurance Services Division. “That is good news for consumers and businesses as they now enjoy some of the lowest insurance costs in the nation.”
“UPMC’s solid financials sustain our ongoing ability to keep reinvesting in clinical care advances and scientific innovation,” added DeMichiei. In the first half of the fiscal year, UPMC spent $190 million on capital expenditures and business investments to advance patient care. Over the last decade, 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 six months of the fiscal year, UPMC’s operating revenues increased to $6.3 billion, due primarily to the growth in insurance services. UPMC Health Plan now has 2.9 million subscribers, growing 20 percent over the past year.
Operating income, which is reinvested in programs that support UPMC’s mission, was $201 million for the period ending December 31, 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 – was $431 million, on track to exceed $500 million for the 12th consecutive year.
As Pennsylvania’s largest non-governmental employer, UPMC maintains its commitment to making sure that the retirement plans of its more than 60,000 employees system-wide are fully funded and contributed $89 million to its pension plans.