UPMC’s Strong Financial Results Through First Quarter of Fiscal Year 2018 Support Growth of Quality Health Care
UPMC First Quarter Fiscal Year 2018 Results:
- Operating revenue grew to $3.9 billion.
- Net income reached $901 million.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew to more than 3.2 million members.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $168 million.
- $7 billion cash and investments provides for long-term sustainability.
PITTSBURGH, Nov. 2, 2017 — UPMC’s strong financial results for the first three months of Fiscal Year 2018 support its growth and extension of quality health care for all of the many communities UPMC serves.
For the first quarter of the fiscal year, ended Sept. 30, 2017, UPMC’s operating revenues increased to $3.9 billion. Net income totaled $901 million, driven by strong operating and investing results, and augmented by the affiliation with UPMC Pinnacle, reflecting Pinnacle’s strong financial position being consolidated into UPMC operations.
Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $62 million. UPMC’s Insurance Services Division—the largest medical insurer in western Pennsylvania—grew 7 percent and now has more than 3.2 million subscribers. UPMC’s admissions and observations increased 15 percent compared to a year ago.
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 $198 million.
UPMC spent $168 million during the quarter 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.
“UPMC’s ongoing strong financial performance allows us to advance our core mission of
providing the high-quality, affordable health care far into the future for the growing number of diverse communities we serve,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer.
The largest non-governmental employer in Pennsylvania, UPMC supports nearly one in four hospital jobs in the Commonwealth. UPMC maintains its assurance that the retirement plans of its 80,000 employees system-wide are fully funded with a $107 million contribution during the quarter to its pension plans.
A $17 billion world-renowned health care provider and insurer, Pittsburgh-based UPMC is inventing new models of patient-centered, cost-effective, accountable care. UPMC provides more than $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 80,000 employees, more than 30 hospitals, 600 doctors’ offices and outpatient sites, and a more than 3.2 million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. As UPMC works in close collaboration with the University of Pittsburgh Schools of the Health Sciences, U.S. News & World Report consistently ranks UPMC Presbyterian Shadyside on its annual Honor Roll of America’s Best Hospitals. UPMC Enterprises functions as the innovation and commercialization arm of UPMC, and UPMC International provides hands-on health care and management services with partners on four continents. For more information, go to UPMC.com.