UPMC Calendar Year 2020 Results:
- Operating income of $836 million; operating revenues increased 12% to $23 billion.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, with 4 million members, grew 11%.
- UPMC continues to advance patient care with capital expenditures totaling $865 million.
- $9.9 billion in cash and investments provide for long-term sustainability.
Pittsburgh, February 26, 2021 – UPMC’s financial results for 2020 clearly show the benefits of its successful integrated delivery and finance system strategy as well as its strong clinical leadership throughout the COVID-19 pandemic. Even during challenging times, the region’s largest health system continues to reinvest to advance clinical care and meet increasing demand for new UPMC programs and services throughout the communities it serves.
For Calendar Year 2020, UPMC had operating income of $836 million. Operating revenues increased 12% to $23 billion. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew another 11% and totals 4 million subscribers.
UPMC operations were impacted as a result of the COVID-19 pandemic. Primarily in response to directives from government officials in an attempt to quell the spread of the virus, UPMC’s Health Services division experienced reductions in volumes during the second quarter before volumes began returning to near pre-COVID-19 levels toward the end of June and continued to rebound through year end.
Insurance Services results were favorably impacted by increased enrollment, improvement in the operating performance of the Community Health Choices product, and decreased expenses due to volume declines related to the COVID-19 pandemic
“During this unprecedented year when COVID-19 dominated every aspect of our lives and greatly impacted our health care systems, UPMC clinicians and facilities have demonstrated unparalleled leadership and preparedness in safely delivering outstanding clinical care to both COVID and non-COVID patients,” said Edward Karlovich, executive vice president and chief financial officer, UPMC.
“As a leading integrated provider and insurer, we are well-positioned to weather the storm, both operationally and financially. While we remain prepared to address the challenges of the still-evolving pandemic, we continue doing what we always do — advancing our mission of providing research-based world-class clinical care and re-investing in our hospitals and communities,” Karlovich added.
“UPMC’s successfully integrated provider-insurer model enables our organization to be strong and nimble in fulfilling our mission of always providing the very best, value-based clinical care,” said Diane Holder, executive vice president, UPMC, and president, UPMC Health Plan.
For the year, the health system spent $865 million on capital expenditures to continue enhancing facilities and adding clinical programs and services to extend quality care for patients and communities throughout Pennsylvania and beyond. Such projects include the newly constructed $111 million inpatient tower at UPMC Hamot, which opened ahead of schedule to meet increasing demand; the $12 million UPMC Children’s Harrisburg inpatient wing, bringing nationally ranked pediatric specialty care to families of southcentral Pa.; $87.5 million in renovations and additions at UPMC West Shore hospital in Mechanicsburg, Pa.; a new UPMC Children’s Specialty Care Center in Washington, Pa.; a new multi-specialty outpatient center in South Hanover, Pa.; continuing construction of the UPMC Vision & Rehab Tower in Uptown Pittsburgh; expansion of the UPMC East Emergency Department in Monroeville, Pa.; and the opening of UPMC Children’s Express Care and UPMC Magee Women’s Specialty Services, both in the UPMC Lemieux Sports Complex in Cranberry, Pa.
A $23 billion health care provider and insurer, Pittsburgh-based UPMC is inventing new models of patient-centered, cost-effective, accountable care. The largest nongovernmental employer in Pennsylvania, UPMC integrates more than 92,000 employees, 40 hospitals, 700 doctors’ offices and outpatient sites, and a 4 million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. In the most recent fiscal year, UPMC contributed $1.4 billion in benefits to its communities, including more care to the region’s most vulnerable citizens than any other health care institution, and paid more than $800 million in federal, state and local taxes. Working in close collaboration with the University of Pittsburgh Schools of the Health Sciences, UPMC shares its clinical, managerial and technological skills worldwide through its innovation and commercialization arm, UPMC Enterprises, and through UPMC International. U.S. News & World Report consistently ranks UPMC Presbyterian Shadyside among the nation’s best hospitals in many specialties and ranks UPMC Children’s Hospital of Pittsburgh on its Honor Roll of America’s Best Children’s Hospitals. For more information, go to UPMC.com.