UPMC First Six Months Calendar Year 2021 Results:
- Operating income of $605 million; operating revenue grew 9% to $12 billion, with $1.1 billion net income.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 5% to more than 4 million members.
- UPMC continues to advance patient care with capital expenditures totaling $374 million.
- $10.4 billion in cash and investments provides for long-term sustainability.
PITTSBURGH, August 26, 2021 – UPMC showed strong financial results for the first half of 2021 as it continues to invest in supporting its outstanding workers, advancing clinical care to patients in their communities, and providing service programs to meet diverse needs in every UPMC region.
For the first six months of Calendar Year 2021, UPMC had operating income of $605 million. Operating revenue increased 9% to $12 billion, with net income of $1.1 billion. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew another 5%, totaling more than 4 million subscribers.
Compared to the same period a year ago, UPMC outpatient revenue increased 21%, while physician revenue grew 20%; admissions and observations increased by 8%. 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 $949 million.
“I am proud of how our ongoing financial strength allows us to keep delivering the highest levels of care across UPMC and ensure that all our communities have access to life-saving expertise and medical innovations. We continue to double down on all things-patient care,” said Leslie Davis, president and CEO, UPMC.
“As our employees continue to work tirelessly throughout the uncertainty of the still-evolving pandemic, it is essential that we preserve jobs and ensure the financial and physical protection of our staff. We can ensure our people were safely equipped with the right resources and engaged in the information needed to care for themselves and their families,” Davis said.
“We are constantly reinvesting our earnings back into our employee and patient experience to support advanced care and services for every community we serve,” added Edward Karlovich, executive vice president and chief financial officer.
UPMC spent $374 million on capital expenditures in the first six months of Calendar Year 2021. Major ongoing capital projects involve facility construction and clinical service expansions for communities in every UPMC region, plus technology infrastructure enhancements that include data analytics and other technologies that are transforming the patient experience across the spectrum of health care.
A $23 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 92,000 employees, 40 hospitals, 800 doctors’ offices and outpatient sites, and a more than 4 million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. In the most recent fiscal year, UPMC contributed $1.7 billion in benefits to its communities, including more care to the region’s most vulnerable citizens than any other health care institution, and paid more than $900 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 consistently ranks UPMC Presbyterian Shadyside among the nation’s best hospitals in many specialties and ranks UPMC Children’s Hospital of Pittsburgh on its Honor Roll of America’s Best Children’s Hospitals.
UPMC Quarterly Disclosure for the period ended June 30, 2021 (PDF)