11/26/2019
First Nine Months Calendar Year 2019 Results:
- Operating revenues grew 10% to $15 billion, with net income of $298 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $737 million.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 5% to nearly 3.6 million members.
- $6.8 billion cash and investments provide for long-term sustainability.
PITTSBURGH, Nov. 26, 2019 – UPMC’s financial results for the first nine months of Calendar Year 2019 support its ongoing commitment to expand accessibility of world-class advanced specialty care throughout UPMC’s tertiary care hubs across the state and beyond, into the communities where care is needed, close to people’s homes.
For the first nine months of Calendar Year 2019, UPMC’s operating revenues increased to $15 billion, with a net income of $298 million. Operating income, which is reinvested in programs that supportUPMC’s mission of advancing patient care, was $93 million. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew 5% to nearly 3.6 million subscribers. UPMC’s admissions and observations decreased 1% 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 $567 million.
The health system spent $737 million on capital expenditures and business investments during the period ended September 30.
“UPMC continues to make significant advancements in our facilities, equipment, technology and operational strategies to provide specialty services and patient care in more communities where it is needed,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer.
“Our mission is to expand our signature high-end clinical service lines, such as Hillman Cancer Center, Magee-Womens, and Heart & Vascular Institute, to our hospitals and outpatient centers in our regional hubs throughout the state and beyond,” said Leslie Davis, UPMC senior vice president, and executive vice president and chief operating officer, UPMC Health Services Division.
“These investments have helped advance our regional hub hospitals to become more like tertiary care centers for their local communities. Examples of this are UPMC Hamot in Erie and UPMC Pinnacle in Harrisburg. And in southwestern Pennsylvania, as we plan the development of our specialty hospitals in Pittsburgh, there is opportunity to move other complex care services to some of our other hospitals in our surrounding communities, such as UPMC Passavant, which is becoming our specialty care center in the region north of the city,” Davis said.
About UPMC
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 89,000 employees, 40 hospitals, 700 doctors’ offices and outpatient sites, and a more than 3.6 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.
Additional Resources
UPMC Quarterly Disclosure (PDF) for the first nine months of 2019.
First nine months of 2019 financial results support slides (PDF)