UPMC's Strong Financial Results for First Nine Months of Fiscal Year Enables Continued Support of Scientific Research and Education
UPMC First Nine Months Fiscal Year 2017 Results:
- Operating revenues grew to $11 billion, with net income of $871 million.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 7 percent to 3.2 million members.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $416 million.
- UPMC’s $262 million pension contribution maintains its funded status and protects employees’ retirement plans.
- $6.1 billion cash and investments provides for long-term sustainability.
PITTSBURGH, May 4, 2017 – UPMC’s strong financial performance through the first nine months of fiscal year 2017 enables the region’s most preferred provider and largest medical insurer to also continue its support of scientific research and education. UPMC has provided nearly $2 billion to the University of Pittsburgh Schools of the Health Sciences over the past five years.
For the first nine months of the fiscal year, UPMC’s operating revenues increased to $11 billion and net income totaled $871 million. UPMC’s Insurance Services Division grew 7 percent to 3.2 million subscribers. UPMC’s admissions and observations increased 9 percent. Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $178 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 $544 million.
UPMC spent $416 million on capital expenditures and business investments as it continues to make significant advancements in facilities, equipment, technology, education and operational strategies to enhance patient care.
While becoming one of the nation’s largest and most successful integrated health systems, UPMC also remains a leading academic medical center, home to one of the biggest medical residency programs, in partnership with the University of Pittsburgh School of Medicine.
“In the midst of an evolving and challenging environment in health care and academic medicine, it is essential to UPMC’s mission of advancing patient care to support the education and training of our future health care researchers and innovators,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer.
“UPMC’s support of Pitt’s Schools of the Health Sciences has helped catapult Pitt to number 5 in NIH (National Institutes of Health) funding, positioning Pitt as a research powerhouse able to attract some of the best and brightest multi-disciplinary scientists and clinicians to Pittsburgh to collaborate on cutting-edge science that ultimately results in clinical breakthroughs and advanced care for everyone,” said Arthur S. Levine, M.D., senior vice chancellor for the health sciences, and John and Gertrude Petersen Dean, School of Medicine, Pitt.
“There is a unique synergistic relationship between UPMC and Pitt,” said Steven Shapiro, M.D., executive vice president, chief medical officer, and president, Health Services Division, UPMC. “That relationship has not only set the stage for defining the future of health care, it boosts the stature of both organizations as well as our city.”
In addition, as Pennsylvania’s largest non-governmental employer, UPMC maintains its assurance that the retirement plans of its 65,000 employees systemwide are fully funded and contributed $262 million to its pension plans.
A $14 billion world-renowned health care provider and insurer, Pittsburgh-based UPMC is inventing new models of patient-centered, cost-effective, accountable care. UPMC 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 non-governmental employer in Pennsylvania, UPMC integrates 65,000 employees, more than 25 hospitals, 600 doctors’ offices and outpatient sites, and a 3.2 million-member Insurance Services Division, the largest medical and behavioral health 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.