11/6/2014
- UPMC’s operating revenues grew to $2.9 billion, with operating income of $91 million and a net income of $49 million.
- UPMC’s operating EBIDA – or cash flow income – was $205 million.
- UPMC Health Plan total membership exceeds 2.3 million.
- UPMC continues to advance patient care with capital expenditures and business investments totaling $86 million in the first quarter.
- UPMC’s $69 million pension contribution maintains its funded status and protects employees’ retirement plans.
PITTSBURGH, Nov. 6, 2014 – UPMC’s strong financial performance through the first quarter of fiscal year 2015 supports continuing world-class care in an evolving and challenging health care market.
UPMC’s operating revenues increased to $2.9 billion for the first quarter, due primarily to growth in insurance services. Operating income, which is reinvested in programs that support UPMC’s mission, was $91 million for the period ending September 30, 2014. UPMC’s excess of revenues over expenses (net income) was $49 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 $205 million.
UPMC Health Plan currently has more than 2.3 million subscribers, growing 5 percent since this time last year. Physician revenue increased by 4 percent, and the number of employed physicians grew 6 percent to 3,543. In a continuously shrinking market, UPMC’s outpatient revenue grew by 0.2 percent while inpatient volume decreased 1.6 percent.
“UPMC has always been ahead of the curve. By continuing to generate new sources of revenue with our innovations, re-invest in our world-class care, and operate efficiently, UPMC remains strongly positioned to continue re-inventing health care in order to meet the needs of our patients and communities well into the future,” said Robert A. DeMichiei, UPMC executive vice president and chief financial officer.
During the first quarter, UPMC spent $86 million in 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.
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 $69 million to its pension plans.
UPMC’s diversified investment reserve portfolio stands at $4.2 billion. “UPMC maintains a long-term investment strategy, which has kept us prepared for the challenging and evolving 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 $887 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, 400 doctors’ offices and outpatient sites, a more than 2.3-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.