UPMC takes in $14.35B in revenue
Fiscal year figures fueled by acquisitions
Fueled by further expansion of its network and continued growth in its insurance plan membership, Pittsburgh health giant UPMC took in $14.35 billion in operating revenue for the fiscal year ending June 30, nearly $2 billion more than the previous year.
The addition of Susquehanna Health in Williamsport and WCA Hospital in Jamestown, N.Y., in the past three months of 2016 helped the revenue number, and the pending addition of PinnacleHealth’s seven hospitals will bolster that figure even more in the coming year.
Other key metrics for UPMC in the past year include $991 million in net income; insurance division membership that now exceeds 3 million; and a $6 billion investment portfolio.
The health system’s operating margin for the past year was 1.7 percent, down from 2.4 percent the year prior due in large part to investments in capital projects.
Chief financial officer Robert DeMichiei described the financial results as “strong” during a media briefing Tuesday at UPMC corporate headquarters in the U.S. Steel Building, Downtown.
He cited organic growth plus UPMC’s acquisitions and continued growth in its insurance division, where membership has grown from 2.23 million members five years ago to 3.17 million today, for its revenue gains.
Over that same 2013-2017 period, patient volumes grew from 264,281 in fiscal 2013 to 312,263, due in large part to UPMC’s expanding hospital network.
Mr. DeMichiei also highlighted UPMC’s provision of $912 million in community benefits in fiscal 2016 as defined by the IRS, while reiterating its continued commitment to serve vulnerable populations such as those on medical assistance.
“It’s part of our mission. This is an organization that has always cared for the less fortunate.”
Over the past five years, UPMC has seen its operating revenue grow from $10.18 billion in fiscal 2013 to $14.35 billion this past year.
Operating income dropped from a high of $384 million in fiscal 2015 to $240 million in fiscal 2017 because of a one-time gain two years ago from the initial public offering for the Evolent Health for-profit management firm UPMC co-founded.