First Quarter 2018 Results:
- Operating revenues grew to $4.6 billion.
- Net income reached $97 million.
- UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 8 percent to 3.4 million members.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $222 million.
- $8.1 billion cash and investments provides for long-term sustainability.
PITTSBURGH, May 3, 2018 – UPMC’s strong financial results for the first three months of Calendar Year 2018 reflect the increasing demand for UPMC services and support clinical priorities, such as UPMC’s commitment to ensure no one needlessly dies on the liver transplant waiting list.
For the quarter ended March 31, 2018, UPMC’s operating revenues increased to $4.6 billion, and net income reached $97 million.
Operating income, which is reinvested in programs that support UPMC’s mission of advancing patient care, was $92 million. UPMC’s Insurance Services Division—the largest medical insurer in western Pennsylvania—grew 8 percent to 3.4 million subscribers. UPMC’s admissions and observations increased 22 percent compared to a year ago.
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 $245 million.
UPMC spent $222 million on capital expenditures and business investments during the quarter as it continues to make significant advancements in facilities, equipment, technology, education and operational strategies to enhance patient care.
“UPMC’s financial strength reflects increasing demand for UPMC’s innovative clinical care and allows us to re-invest in life-saving initiatives like our living donor liver transplant program,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer. “At UPMC, we strongly believe in the ability of living donor liver transplant to be a lifesaving procedure and offer this as a first-line option to all our patients in need of a liver transplant.”
UPMC performs the most living donor liver transplants in the country, and for the first time ever, in 2017, performed more transplants from living than deceased donors.
“Living donor liver transplant is possible for virtually every person on the waiting list and may be the only hope for patients with diagnoses that prevent them from even being placed on the list for scarce organs from deceased donors,” said Abhi Humar, M.D., chief of transplantation at UPMC. “As pioneers in the field of liver transplant, UPMC is on a mission to raise awareness of this life-saving option and to end needless deaths on the waiting list.”
A $16 billion world-renowned health care provider and insurer, Pittsburgh-based UPMC is inventing new models of patient-centered, cost-effective, accountable care. UPMC provides more than $900 million a year in benefits to its communities, including more care to the region’s most vulnerable citizens than any other health care institution. The largest nongovernmental employer in Pennsylvania, UPMC integrates 80,000 employees, more than 30 hospitals, 600 doctors’ offices and outpatient sites, and a 3.4 million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. As UPMC works in close collaboration with the University of Pittsburgh Schools of the Health Sciences, U.S. News & World Report consistently ranks UPMC Presbyterian Shadyside on its annual Honor Roll of America’s Best Hospitals. UPMC Enterprises functions as the innovation and commercialization arm of UPMC, and UPMC International provides hands-on health care and management services with partners around the world. For more information, go to UPMC.com.
UPMC Quarterly Disclosure (PDF) for the period ended March 31, 2018
First Quarter 2018 financial results support slides (PDF)