UPMC Calendar Year 2018 Results:
- Operating revenues grew to nearly $19 billion.
- Operating income was $166 million.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 3 percent to 3.5 million members.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $905 million.
- $6.9 billion cash and investments provide for long-term sustainability.
Pittsburgh, Feb. 28, 2018 — UPMC’s strong financial results through Calendar Year 2018 reflect the continuously increasing demand for UPMC’s high-quality clinical services and insurance products in an ultra-competitive and evolving market.
For the Calendar Year ended Dec. 31, 2018, UPMC’s operating revenues increased to nearly $19 billion.
Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $166 million. UPMC’s Insurance Services Division—the largest medical insurer in western Pennsylvania—grew 3 percent to 3.5 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 $790 million.
The health system spent $905 million on capital expenditures and business investments during the year as it continues to make significant advancements in facilities, equipment, technology, education and operational strategies to enhance patient care in more communities in and beyond western Pennsylvania. More than $170 million was invested in numerous technology-enabled operating initiatives and critical infrastructure. That included the move to a more flexible and secure data center, expansion of telemedicine capabilities, and installation of biometric fingerprint scanners to identify patients while speeding check-ins, preventing identity theft and offering greater customer convenience.
“As our region’s preferred provider, UPMC continues to invest back into the organization to ensure continued high-quality service and care, including the sharp demand for UPMC’s advanced clinical care,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer. “To the benefit of our patients, businesses and community, we are able to keep expanding world-class care and affordable insurance choices with our successful integrated model as a high-quality provider and insurer,” he added.
UPMC’s emergence last year as the largest medical insurer in western Pennsylvania and continuing growth today has resulted in the region having one of the most competitive, low-cost markets in the country.
“Reflecting a drastic shift from just a few years ago, today our region is no longer a highly concentrated insurance market, but rather a highly competitive, pro-consumer market. Almost every business and organization in western Pennsylvania now offers their employees affordable insurance options so they can access UPMC hospitals and physicians,” said Diane P. Holder, UPMC executive vice president and president, UPMC Insurance Services Division. “We are among the lowest-cost “top 30” cities nationwide, where seniors with Medicare Advantage have more options than ever, and individual plan members have among the lowest costs in the nation.”
- UPMC Quarterly Disclosure with Audited Consolidated Financial Statements for period ended December 31, 2018 and report of independent regsitered public accounting firm (PDF)
- Calendar Year 2018 financial results support slides (PDF)
A $19 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 87,000 employees, 40 hospitals, 700 doctors’ offices and outpatient sites, and a 3.5 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 around the world. For more information, go to UPMC.com.