8/24/2023
UPMC First Six Months 2023 Results:
- Operating income of $15 million; operating revenue of $13.8 billion; net income of $150 million.
- UPMC Insurance Services Division, the largest health insurer in western Pennsylvania with more than 4.5 million members, grew 11%.
- UPMC continues to advance patient-centered care with $363 million in strategic capital investments.
PITTSBURGH, August 24, 2023 — While UPMC’s financial results for the first six months of 2023 reflect the ongoing challenges in the post-pandemic health care environment - including increased costs to deliver high-quality care - UPMC remains strongly positioned as one of the nation’s leading integrated health systems and the region’s most preferred provider and insurer.
UPMC Health Plan enrollment grew 11%, with expansion of behavioral health and Medicaid products into new regions of eastern Pennsylvania. Total operating income decreased compared to a year ago due primarily to increased utilization across several insurance division products as patient volumes increased. Hospital patient admissions and observations grew 2%, and outpatient activity grew 9%.
“With patient preference shifting from inpatient to outpatient care delivery closer to home, we continue to substantially invest to improve access to UPMC’s clinical excellence and community services in ambulatory settings throughout all our regions,” said Edward Karlovich, executive vice president and chief financial officer of UPMC. “UPMC’s $363 million in capital expenditures for the year’s first six months are aimed at supporting the right level of patient-centered, high-quality, cost-effective care in the right places,” Karlovich said. Capital projects include major construction and improvements at UPMC facilities in Central and North Central Pennsylvania, the new UPMC Mercy Pavilion, UPMC Presbyterian, and expansions and enhancements across the health system.
Facing the same workforce challenges as other health systems nationwide, UPMC continues as an industry leader, investing in innovative internal programs to support its employees and creative partnerships with various schools and training programs throughout Pennsylvania to teach and recruit future health care professionals.
About UPMC
UPMC is a world-renowned, nonprofit health care provider and insurer committed to delivering exceptional, people-centered care and community services. Headquartered in Pittsburgh and affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC is shaping the future of health through clinical and technological innovation, research, and education. Dedicated to advancing the well-being of our diverse communities, we provide more than $1 billion every year in community benefits, more than any other health system in Pennsylvania. Our 95,000 employees — including more than 5,000 physicians — care for patients across 40 hospitals and 800 doctors’ offices and outpatient sites in Pennsylvania, New York, and Maryland, as well as overseas. UPMC Insurance Services covers 4.5 million members with a focus on providing the highest-quality care at the most affordable price. To learn more, visit UPMC.com.
