8/28/2015
- UPMC’s operating revenues grew to $12 billion, with operating income of $338 million and a net income of $417 million.
- UPMC’s operating EBIDA – or cash flow income – was a record-high $804 million.
- UPMC Health Plan total membership increased to more than 2.7 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $412 million.
- UPMC’s $136 million pension contribution maintains its funded status and protects employees’ retirement plans.
PITTSBURGH, Aug. 28, 2015 – UPMC maintained its strong financial results through fiscal year 2015 amidst an evolving market, allowing western Pennsylvania’s leading health care provider to continue meeting the region’s health care needs.
UPMC’s operating revenues increased to $12 billion for the fiscal year, due primarily to growth in insurance services and health services. Operating income, which is reinvested in programs that support UPMC’s mission, was $338 million for the 12 months ended June 30, 2015. UPMC’s excess of revenues over expenses (net income) was $417 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 $804 million, a record high for UPMC.
UPMC Health Plan now has more than 2.7 million subscribers, growing 17 percent since this time last year. Physician revenue increased by 4 percent, and the number of employed physicians grew 2 percent to 3,567. In a market that is shrinking by 3 percent each year, UPMC’s admissions and observations were down 1 percent while outpatient revenue remained flat.
“Our strong financial performance reflects UPMC’s ongoing ability to stay ahead of the challenges of this evolving health care market so that we can continue to provide top-ranked clinical care while operating efficiently as a nationally renowned IDFS,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer.
For the 16th year, UPMC was named to the U.S. News & World Report Honor Roll of “America’s Best Hospitals” while Children’s Hospital of Pittsburgh of UPMC was named to the U.S. News & World Report Honor Roll of America’s Best Children’s Hospitals for the sixth consecutive year. UPMC earned 13th position on the best hospitals Honor Roll, and Children’s earned eighth place on the best children’s hospitals Honor Roll.
During fiscal year 2015, UPMC spent $412 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 more than $5 billion to upgrade its technology, facilities and infrastructure, all toward ensuring top-quality care and the best patient experience.
As Pennsylvania’s largest non-governmental employer, UPMC maintains its commitment to making sure 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 $4.6 billion. “UPMC maintains a long-term investment strategy, keeping us prepared for economic challenges in a 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, more than 500 doctors’ offices and outpatient sites, a more than 2.7-million-member health insurance division, and international and commercial operations. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC ranks No. 13 in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals. For more information, go to UPMC.com.