11/24/2020
UPMC First Nine Months Calendar Year 2020 Results:
- Operating income of $227 million; operating revenues increased 11% to $17 billion.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, with
3.9 million members, grew 9%. - UPMC continues to advance patient care with capital expenditures totaling nearly $600 million.
- $10 billion in cash and investments provide for long-term sustainability.
Pittsburgh, November 24, 2020 – UPMC’s positive financial results for the first nine months of 2020 clearly show the benefits of its successful integrated delivery and finance system strategy as well as its strong clinical leadership throughout the COVID-19 pandemic. UPMC’s patient volumes continue to rebound and the region’s largest health system continues to reinvest in clinical excellence to meet increasing demand for new UPMC programs and services throughout the communities it serves.
For the first nine months of Calendar Year 2020, UPMC had operating income of $227 million. Operating revenues increased 11% to $17 billion. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew another 9% and totals 3.9 million subscribers.
In the midst of the pandemic, UPMC outpatient revenue decreased 4%, physician revenue was down 6%, and admissions and observations decreased by 11% compared to the same period a year ago.
“During this unprecedented period, UPMC clinicians and facilities have demonstrated unparalleled leadership and preparedness in safely delivering outstanding clinical care to both COVID and non-COVID patients,” said Edward Karlovich, executive vice president and chief financial officer, UPMC.
Our clinical volumes are steadily increasing back to pre-pandemic levels as we have proven the safety of our hospitals, our ability to care for COVID patients, and our effective use of vast UPMC resources and expertise throughout our system. We are seeing our patients continue to seek UPMC care for both urgent care and routine care that they may have delayed,” Karlovich said.
Meanwhile, during the first nine months, the health system spent $599 million on capital expenditures to continue enhancing facilities and adding clinical programs and services to extend quality care for patients and communities throughout Pennsylvania and beyond. Such projects include the new $12 million UPMC Children’s Harrisburg inpatient wing, bringing nationally ranked pediatric specialty care to families of southcentral Pa.; $87.5 million in renovations and additions at UPMC West Shore hospital in Mechanicsburg, Pa.; a new UPMC Children’s Specialty Care Center in Washington, Pa.; a new multi-specialty outpatient center in South Hanover, Pa.; continuing construction of the UPMC Vision & Rehab Center in Uptown Pittsburgh; expansion of the UPMC East Emergency Department in Monroeville, Pa.; and the opening of UPMC Children’s Express Care and UPMC Magee Women’s Specialty Services, both in the UPMC Lemieux Sports Complex in Cranberry, Pa.
About UPMC
A $21 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 more than 90,000 employees, 40 hospitals, 700 doctors’ offices and outpatient sites, and a 3.9 million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. In the most recent fiscal year, UPMC contributed $1.4 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 $800 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 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. For more information, go to UPMC.com.
Additional Resources
UPMC Quarterly Disclosure (PDF) for the first nine months of 2020.
Third quarter of 2020 financial results support slides (PDF)