UPMC First Six Months 2018 Results:
- Operating revenues grew to $9.3 billion.
- Operating income was $176 million.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 7 percent to 3.4 million members.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $439 million.
- $7.6 billion cash and investments provide for long-term sustainability.
PITTSBURGH – UPMC’s strong financial results for the first six months of Calendar Year 2018 are supporting the increasing demand for UPMC in communities beyond the western Pennsylvania region.
For the six months ended June 30, 2018, UPMC’s operating revenues increased to $9.3 billion, and net income reached $116 million.
Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $176 million. The second quarter results include a $34 million ACA risk adjustment charge related to the prior calendar year. The 2018 operating income was negatively impacted by this prior-year adjustment, which demonstrates an even higher quality of UPMC’s 2018 earnings and the year over year increase.
UPMC’s Insurance Services Division—the largest medical insurer in western Pennsylvania—grew 7 percent to 3.4 million subscribers. UPMC’s admissions and observations increased 23 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 $483 million.
The health system spent $439 million on capital expenditures and business investments during the first half of Calendar Year 2018 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.
“Our strong financial performance and successful IDFS model have allowed us to operate a vibrant and nimble integrated hospital network that has continued to grow, fulfilling our mission of expanding world-class care into many new communities beyond western Pennsylvania,” said according to Robert A. DeMichiei, UPMC executive vice president and chief financial officer. DeMichiei.
“As more and more independent hospitals and health systems seek affiliations and mergers with strong systems like UPMC, we look for opportunities for growth with potential partners who share our vision and commitment to advance high-quality, low-cost care close to home for patients and families,” said Leslie Davis, UPMC senior vice president, and executive vice president and chief operating officer, UPMC Health Services Division. “UPMC has a long track record of successful affiliations and community service as demand for UPMC increases. We are proud to continue investing in our hospitals, outpatient centers, clinical programs, operational strategies and in the overall health of our communities.”
UPMC Quarterly Disclosure (PDF)
for the period ended
June 30, 2018
First six months 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 85,000 employees, 40 hospitals, 600 doctors’ offices and outpatient sites, and a 3.4 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.