10/27/2011
- UPMC’s operating revenues grew by $352 million to $2.4 billion, with an operating income of $155 million.
- UPMC’s operating EBIDA – or cash flow income – was $253 million.
- UPMC’s $3.3 billion diversified investment reserve portfolio provides for long-term sustainability.
- UPMC continues to increase services and invest in the region, with $120 million in capital expenditures.
- UPMC’s financial results support reinvestment to develop and improve the future of medicine.
PITTSBURGH, October 27 – UPMC’s financial results through the first quarter of fiscal year 2012 allow the region’s largest health care provider to continue growing clinical services and reinvest to meet the needs of communities throughout the region now and into the future. UPMC today released the details of its financial results for the period (July 1 through Sept. 30, 2011). UPMC also announced the creation of the UPMC Center for Innovative Science to focus on developing and improving the future of medicine.
UPMC’s operating revenues increased by $352 million to $2.4 billion for the first three months of the fiscal year. Operating income grew by $62 million to $155 million. Rating agency operating income increased from $62 million to $123 million for the first quarter, which equates to a 3.6 percent rating agency margin.
UPMC’s earnings before interest, depreciation and amortization (EBIDA) – a key measure of financial performance and the ability to generate the necessary resources for reinvestment – were $253 million for the period.
During the first quarter, UPMC spent $120 million in capital expenditures to increase clinical services and enhance patient care and clinical excellence through best-in-class information technology and hospital and other facility construction and improvements.
“UPMC continues our long-standing mission of providing outstanding clinical services to meet the needs of our communities while reinvesting in the future of our region and in the future of medicine,” said Robert A. DeMichiei, UPMC senior vice president and chief financial officer.
UPMC’s key operating metrics were up compared to the same period a year ago. Outpatient revenue was up 33 percent; total hospital admissions and observations were up 13 percent; UPMC Health Plan membership grew 10 percent to more than 1.6 million subscribers; and physician revenue increased by 2 percent. The number of employed physicians grew nearly 6 percent to 2,954.
UPMC’s diversified investment reserve portfolio stands at $3.3 billion, with a negative 6.1 percent return for the first quarter of the fiscal year. “UPMC maintains a long-term investment perspective. We continue to avoid the need to draw on our long-term reserves to fund day-to-day operations, capital expenditures or pension fund contributions,” said C. Talbot Heppenstall, Jr., UPMC senior vice president and treasurer.
UPMC Center for Innovative Science
UPMC also announced today that it will invest nearly $300 million to create the UPMC Center for Innovative Science, a research facility located in Bloomfield that will help develop the future of medicine by focusing on personalized medicine that aims to improve patient outcomes and reduce unnecessary treatment. The center will create approximately 375 new jobs.
About UPMC
UPMC is a $9 billion global health enterprise with more than 54,000 employees headquartered in Pittsburgh, Pa., and is transforming health care by integrating more than 20 hospitals, 400 doctors’ offices and outpatient sites, a health insurance services division, and international and commercial services. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC is redefining health care by using innovative science, technology, and medicine to invent new models of accountable, cost-efficient, and patient-centered care. Learn more about how UPMC is taking medicine from where it is to where it needs to be.