UPMC First Nine Months Calendar Year 2021 Results:
- Operating income of $798 million; operating revenue grew to $18 billion, with $1.2 billion net income.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew to 4.1 million members, increasing by 4% in the last year.
- UPMC continues to advance patient care with capital expenditures totaling $552 million.
- $10.9 billion in cash and investments provides for long-term sustainability.
PITTSBURGH, November 23, 2021 – UPMC's continuously strong financial results for the first nine months of 2021 underpin its robust investment in caring for its 92,000 employees as well as the growing number of patients throughout all the communities UPMC serves during the still-evolving COVID-19 pandemic.
For the first nine months of Calendar Year 2021, UPMC had operating income of $798 million. Operating revenue increased to $18 billion, with net income of $1.2 billion. UPMC's Insurance Services Division — the largest medical insurer in western Pennsylvania — grew to 4.1 million members, increasing by 4% in the last year.
Compared to the same period a year ago, UPMC outpatient revenue increased 17%, while physician services revenue grew 12%; admissions and observations increased by 5%. 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 $1.3 billion.
UPMC spent $552 million on capital expenditures in the first nine months of Calendar Year 2021, continuing its focus to advance world-class clinical care even during a pandemic. 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.
"While providing outstanding care to COVID-19 patients, including more monoclonal antibody infusions than any other health system in the Commonwealth and providing more than 700,000 COVID-19 vaccine doses, UPMC has never stopped providing the other essential care and services that our patients and communities need," said Edward Karlovich, executive vice president and chief financial officer, UPMC.
"Our leadership role as the pandemic evolves stems from our steadfast support of our outstanding dedicated employees who provide this care every day. We have maintained various pay protection policies, merit increases and physical safety assurances for our employees throughout the crisis. And, recently we announced a $300 million investment to further support our workforce, with numerous benefit enhancements, including rewarding each eligible employee with a one-time $500 bonus as a special "thank you" for their service throughout this unprecedented period in healthcare," Karlovich said.
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.