First Six Months Calendar Year 2019 Results:
- Operating revenues grew 10% to $10 billion, with net income of $372 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $506 million.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 3 percent to more than 3.5 million members.
- $7 billion cash and investments provide for long-term sustainability.
PITTSBURGH, Aug. 28, 2019 – UPMC’s strong financial results for the first half of Calendar Year 2019 support its ongoing commitment to providing world-class clinical excellence while also addressing the most pressing health needs of all the local communities it serves.
For the first six months of Calendar Year 2019, UPMC’s operating revenues increased to $10 billion, with a net income of $372 million. Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $93 million. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew 3% to more than 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 $407 million.
The health system spent $506 million on capital expenditures and business investments during the period ended June 30 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.
"One of the results of UPMC’s ongoing financial strength and reinvestment back into our clinical programs and facilities is inclusion once again on the U.S. News & World Report Honor Roll of America’s Best Hospitals,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer. This year, UPMC Presbyterian Shadyside is ranked #15 in the nation. Meanwhile, UPMC Children’s Hospital of Pittsburgh is ranked #8 in the nation on the U.S. News & World Report Honor Roll of America’s Best Children’s Hospitals.
“In addition to advancing clinical services, UPMC’s financial strength enables an equal commitment to identify and address the most pressing needs of the many local communities we serve,” DeMichiei said.
This is reflected in UPMC’s recently published comprehensive 2019 Community Health Needs Assessments (CHNA) and Implementation Plans and described in this news release that identifies the four most significant health needs across all UPMC communities.
UPMC partnered with experts from the University of Pittsburgh Graduate School of Public Health to conduct the CHNAs, which consist of a combination of public health data analysis, socioeconomic factors and a structured community input survey process that solicited feedback from more than 2,000 community stakeholders such as leaders and organizations that represent patient constituencies — including medically underserved, low-income and minority populations.
“While the CHNA is an IRS requirement of all licensed non-profit hospitals, at UPMC, we do more than just check the CHNA boxes,” said Leslie Davis, UPMC senior vice president, and executive vice president and chief operating officer, UPMC Health Services Division. “Each UPMC hospital is deeply rooted in its community. We approach the CHNA requirement as an opportunity to engage each community with a formally structured and detailed process guided by public health experts to ensure that health improvement efforts and resources are aligned with the most significant health needs.”
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 more than 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 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.
UPMC Quarterly Disclosure (PDF) for the first half of 2019.
First half of 2019 financial results support slides (PDF)