First Three Months Calendar Year 2019 Results:
- Operating revenues grew 10% to $5 billion, with net income of $289 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $245 million.
- UPMC supported $1.2 billion in community benefits last year.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 3 percent to 3.5 million members.
- $7.3 billion cash and investments provide for long-term sustainability.
PITTSBURGH, May 2, 2019 – UPMC’s strong financial results for the first quarter of Calendar Year 2019 support its ongoing commitment to all the communities it serves, providing $1.2 billion in IRSdefined community benefits during the most recent fiscal year. Meanwhile, UPMC Children’s Hospital of Pittsburgh celebrates 10 years of delivering world-class pediatric care in its Lawrenceville complex, built from the ground up in 2009 with a $665 million initial investment from UPMC. With additional capital expenditures of $150 million since then, UPMC’s total investment in Children’s Hospital to date totals $815 million.
For the first three months of Calendar Year 2019, UPMC’s operating revenues increased to $5 billion, with a net income of $289 million. Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $51 million. UPMC’s Insurance Services Division—the largest medical insurer in western Pennsylvania—grew 3 percent with 3.5 million subscribers. UPMC’s admissions and observations decreased 2% compared to a year ago.
UPMC’s earnings before interest, depreciation and amortization (operating EBIDA)—a key measure of financial performance and the ability to generate the necessary resources for reinvestment—were $206 million.
The health system spent $245 million on capital expenditures and business investments during the period ended March 31 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.
For UPMC Children’s Hospital, UPMC’s total investment of $815 million to date ensures continuing clinical advancements and expansions at the hospital, which is consistently ranked among the best children’s hospitals in the nation.
Children’s provides many unique treatments, therapies and surgeries that very few or no other children’s hospitals can offer. It attracts 13,000 patients a year from outside the region, including internationally.
“In addition to advancing clinical services, UPMC remains equally committed to serving the most pressing needs of the many diverse communities we serve,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer. “In fact, UPMC provides more IRS-defined community benefits than any other health system in Pennsylvania. On a national level, UPMC leads other academic medical centers and large regional health systems in community contributions in both absolute numbers and as a percentage of net patient revenue.”
The newly published 2018-2019 UPMC Community Benefits Report shows that UPMC contributed $1.2 billion during the most recent fiscal year. That included $395 million in charity care and costs for those in need; $489 million for medical research and education; and $343 million for health and wellness programs and charitable contributions.
“UPMC provides the largest share of the region’s charity care. While we care for 43% of patients in western Pennsylvania, we provide 61% of the hospital charity care in the region,” DeMichiei said. “We contribute nearly all of the hospital-funded research in western Pennsylvania and nearly half of all hospital-funded research in the entire state.”
The report also shows UPMC’s $36 billion economic impact on the region, which has more than doubled in the last 10 years. UPMC accounts for one in four hospital jobs statewide. In addition, UPMC paid $587 million in federal, state and local taxes last year. “We are proud to keep advancing clinical care for our patients and serving as a powerful engine of progress, growth and prosperity for our region and communities throughout the state,” DeMichiei added.
A $20 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 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. 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. For more information, go to UPMC.com.
UPMC Quarterly Disclosure (PDF) for the period ended March 31, 2019
First Quarter 2019 financial results support slides (PDF)