5/15/2015
- UPMC’s operating revenues grew to $8.8 billion, with operating income of $197 million and a net income of $205 million.
- UPMC’s operating EBIDA – or cash flow income – was $547 million.
- UPMC Health Plan total membership increased to more than 2.6 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $302 million in the first nine months.
- UPMC’s $136 million pension contribution maintains its funded status and protects employees’ retirement plans.
PITTSBURGH, May 15, 2015 – UPMC continued its commitment to providing world-class health care to all the communities it serves with strong financial results through the first nine months of fiscal year 2015.
UPMC’s operating revenues increased to $8.8 billion for the first nine months, due primarily to growth in insurance services. Operating income, which is reinvested in programs that support UPMC’s mission, was $197 million for the period ending March 31, 2015. UPMC’s excess of revenues over expenses (net income) was $205 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 $547 million. UPMC’s EBIDA is on target to exceed $500 million for the tenth consecutive fiscal year.
UPMC Health Plan now has more than 2.6 million subscribers, growing 13 percent since the period a year ago. Physician revenue increased by 4 percent, and the number of employed physicians grew 2 percent to 3,586. In a continuously shrinking market, UPMC’s outpatient revenue and inpatient volume remained flat.
“In the midst of the evolving market and intensified insurance competition, UPMC maintains its long-term financial strength, its ability to re-invest in world-class health care, and its commitment to serving the community,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer.
During the first nine months of fiscal year 2015, UPMC spent $302 million on capital expenditures and business investments to advance its unwavering commitment to provide clinical excellence, good science, smart technology and accountable care to all the communities it serves. Over the last 10 years, UPMC has reinvested an annual average of $500 million for patient care.
UPMC’s recently released 2014 Community Benefits Report shows that the system provided $888 million in IRS-defined community benefits during Fiscal Year 2014. This included $346 million in charity care and programs for the poor, $197 million to improve health and quality of life in our region’s communities, and $345 million toward research and education. As part of its non-profit mission, UPMC currently cares for 41 percent of the patients in western Pennsylvania, and provides 65 percent of the hospital charity care in the region.
As Pennsylvania’s largest non-governmental employer, UPMC maintains its commitment to ensuring that the retirement plans of its more than 60,000 employees system-wide are fully funded and contributed $136 million to its pension plans.
UPMC’s diversified investment reserve portfolio stands at $4.3 billion. “UPMC maintains a long-term investment strategy, keeping us prepared for challenges in the healthcare industry and changing marketplace,” said C. Talbot Heppenstall Jr., UPMC executive vice president, treasurer and president – UPMC Enterprises.
About UPMC
A world-renowned health care provider and insurer, Pittsburgh-based UPMC is inventing new models of accountable, cost-effective, patient-centered care. It provides more than $888 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 more than 60,000 employees, more than 20 hospitals, 500 doctors’ offices and outpatient sites, a more than 2.6-million-member health insurance division, and international and commercial operations. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC ranks No. 12 in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals — and No. 1 in Pennsylvania. For more information, go to UPMC.com.
