- UPMC’s operating revenue grew by $650 million to $4.8 billion, with an operating income of $220 million.
- UPMC’s operating EBIDA – or cash flow income – was $416 million.
- UPMC’s $3.6 billion diversified investment reserve portfolio provides for long-term sustainability.
- UPMC continues to increase services and invest in the region, with $259 million in capital expenditures during first six months of fiscal year 2012.
- UPMC’s financial results reflect growing preference for UPMC’s clinical excellence and insurance products.
PITTSBURGH, Feb. 2 – UPMC’s financial strength through the first half of fiscal year 2012 allows the region’s largest health care provider to increasingly serve the needs of the community while continuing to re-invest in the region. UPMC today released the details of its financial results for the first half of fiscal year 2012, ending December 31, 2011.
UPMC’s operating revenues increased by $650 million to $4.8 billion for the first six months of the fiscal year. Operating income grew by $14 million to $220 million.
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 $416 million for the period.
During the first half of the fiscal year, UPMC spent $259 million in capital expenditures in order to continue providing world-class clinical care and services for the communities it serves.
“Our strong financial results are a reflection of the growing preference for UPMC’s superb clinical care and insurance products,” said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. “More and more, patients, physicians and businesses are increasingly choosing UPMC.”
UPMC’s key operating metrics were up compared to the same period a year ago. Outpatient revenue was up 32 percent; total hospital admissions and observations were up 13 percent; physician revenue increased by 3 percent; and the number of employed physicians grew 14 percent to 3,240. UPMC Health Plan membership grew 14.5 percent to 1.8 million subscribers as of January 1, 2012.
UPMC’s diversified investment reserve portfolio stands at $3.6 billion, with a negative 4.5 percent return for the first half of the fiscal year. “It is important to note that 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 employee pension plans,” said C. Talbot Heppenstall, Jr., UPMC senior vice president and treasurer.
UPMC is a $10 billion global health enterprise with more than 55,000 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.