5/29/2020
UPMC First Three Months Calendar Year 2020 Results:
- Operating revenues grew 9% to $5.5 billion.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 7% to nearly 3.8 million members.
- UPMC continues to advance patient care with capital expenditures totaling $225 million.
- $7 billion cash and investments provide for long-term sustainability.
PITTSBURGH, May 29, 2020 – UPMC’s financial results for the first quarter of Calendar Year 2020 reflect challenges facing all hospitals during the COVID-19 pandemic and sustain UPMC’s critical leadership role in caring for patients and serving the community during the crisis.
For the first three months of Calendar Year 2020, UPMC’s operating revenues increased 9% to $5.5 billion compared to year ago. UPMC showed an operating loss of $41 million for the quarter. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew another 7% and now totals nearly 3.8 million subscribers.
The health system spent $225 million on capital expenditures to continue enhancing facilities and technology to expand quality care for patients and communities throughout Pennsylvania and beyond.
“Even in challenging times, UPMC will continue to re-invest back into its innovative, mission-driven programs and world-class facilities to ensure we are well-equipped and well-positioned for the increasing needs of our patients and our communities,” said Edward Karlovich, vice president and interim chief financial officer, UPMC.
For the first three months, compared to the prior year, UPMC outpatient revenue increased 1%, while physician revenue was down 3%; admissions and observations decreased by 4%.
“During the COVID-19 crisis, UPMC’s leaders, scientists, clinicians and front-line workers throughout our 40-hospital system were prepared to care for the potential surge of COVID-positive patients while also safely providing essential, life-saving care to our non-COVID patients,” Karlovich said. “However, many patients who had scheduled surgeries and procedures before the crisis postponed their care. With assurances that all our facilities are safe for all patients and staff, we are seeing our patients returning for their essential care that had been postponed and our current volumes are beginning to approach near-normal levels.”
About UPMC
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 more than 90,000 employees, 40 hospitals, 700 doctors’ offices and outpatient sites, and a nearly 3.8 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.
Additional Resources
UPMC Quarterly Disclosure (PDF) for the first three months of 2020.
First quarter of 2020 financial results support slides (PDF)