UPMC Calendar Year 2019 Results:
- Operating revenues grew nearly 10% to $20.6 billion, with net income of $420 million.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 8% to more than 3.7 million members.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $971 million.
- UPMC provided $1.2 billion in IRS-guided community benefits.
- $6.6 billion cash and investments provide for long-term sustainability.
Pittsburgh, Feb. 28, 2020 — UPMC’s financial results for Calendar Year 2019 support the increasing demand for its world-class clinical care and UPMC’s ongoing commitment to the many diverse communities it serves.
For Calendar Year 2019, UPMC’s operating revenues increased 10% to $20.6 billion, with a net income of $420 million. Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $27 million. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew another 8% and now totals more than 3.7 million subscribers.
The health system spent $971 million on capital expenditures and business investments during the last calendar year to continue enhancing facilities and technology to expand quality care for patients and communities throughout Pennsylvania and beyond. In addition, UPMC provided $1.2 billion in IRS-guided community benefits last year.
“We are focused on re-investing UPMC’s earnings in order to do the innovative work needed to keep improving clinical excellence, patient experience and community services,” said Edward Karlovich, vice president and interim chief financial officer, UPMC.
“UPMC continues to aggressively re-invest back into its mission-driven programs and facilities to ensure we are well-equipped and well-positioned for the increasing present and future needs of our patients,” added Karlovich.
“Highmark subscribers clearly value and want access to UPMC’s doctors and services. And now that Highmark members have that assured access, the volume of Highmark members seeking care at UPMC is growing significantly across UPMC’s inpatient and outpatient facilities,” said Leslie Davis, UPMC senior vice president, and executive vice president and chief operating officer, UPMC Health Services Division. “So far this year, Highmark members receiving inpatient care has increased by 30%, and outpatient care has increased by 26%.”
For the year, UPMC physician revenue was up 7%; outpatient revenue increased by 6%; and admissions and observations decreased by 1%. UPMC’s investment reserve portfolio stands at $6.6 billion, providing long-term sustainability, with a calendar year return of 13%.
A $21 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 89,000 employees, 40 hospitals, 700 doctors’ offices and outpatient sites, and a more than 3.7 million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. In the most recent fiscal year, UPMC contributed $1.2 billion in benefits to its communities, including more care to the region’s most vulnerable citizens than any other health care institution, and paid $587 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 on its annual Honor Roll of America’s Best Hospitals 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.
UPMC Year End Disclosure (PDF) for Calendar Year 2019.
Calendar Year 2019 financial results support slides (PDF)