UPMC Shows Strong Financial Results for First Quarter of Fiscal Year, Continuing Support for Scientific Innovation and Clinical Advances
UPMC First Quarter Fiscal Year 2017 Results:
- Operating revenues grew to $3.4 billion, with operating income of $60 million.
- UPMC’s operating EBIDA – or cash flow income – was $175 million.
- Total membership in UPMC Insurance Services Division, now the largest medical and behavioral health services insurer in western Pa., increased 7 percent to more than 3 million.
- UPMC continues to advance patient care with capital expenditures totaling $116 million.
- UPMC’s $251 million pension contribution maintains its funded status and protects employees’ retirement plans.
- $5 billion cash and investments provides for long-term sustainability.
PITTSBURGH, November 3, 2016 – UPMC showed strong financial performance for the first quarter of fiscal year 2017, enabling the region's leading health care system to continue its support for academic and scientific innovations, translating to clinical excellence and advancements for patient care.
For the first three months of the fiscal year, UPMC's operating revenues increased to $3.4 billion. UPMC's Insurance Services Division, growing 7 percent, now has more than 3 million subscribers and remains the largest medical and behavioral health services insurer in western Pennsylvania.
Operating income, which is reinvested in programs that support UPMC's mission of advancing patient care, was $60 million for the period ending September 30, 2016. 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 $175 million.
"As one of the nation's largest provider-led integrated delivery and finance systems (IDFS), our focus continues to be on leading the transformation of health care from volume to value and developing innovative ways to provide the highest-quality care at the lowest costs," said Robert A. DeMichiei, UPMC executive vice president and chief financial officer.
"To do that, we need to remain firmly committed to supporting research and our academic mission, which brings scientific innovations and clinical breakthroughs."
"That commitment is the foundation for the unique partnership between UPMC and the University of Pittsburgh Schools of the Health Sciences," said Steven Shapiro, M.D., executive vice president, chief medical officer, and president, Health Services Division, UPMC. "Last year alone, UPMC contributed $405 million to research and education, generating multidisciplinary teamwork of specialists to advance clinical care, attract top scientists and clinicians to Pittsburgh, and stimulate partnerships with other leading health organizations."
During the first quarter of fiscal year 2017, UPMC spent $116 million on capital expenditures to enhance facilities and clinical programs for patient care. In addition, 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 $251 million to its pension plans.
A world-renowned health care provider and insurer, Pittsburgh-based UPMC
is inventing new models of patient-centered, cost-effective, accountable care. It provides nearly $900 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 60,000 employees, more than 20 hospitals, more than 500 doctors' offices and outpatient sites, and a more than 3 million-member Insurance Services Division, the largest medical and behavioral health services insurer in western Pennsylvania. 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. UPMC Enterprises functions as the innovation and commercialization arm of UPMC while UPMC International provides hands-on health care and management services with partners in 12 countries on four continents. For more information, go to UPMC.com