UPMC: UPMC’s Strong Financial Results for First Quarter of 2021 Support Constant Re-investment Throughout All Regions UPMC Serves
UPMC First Three Months Calendar Year 2021 Results:
Operating income of $288 million; operating revenue grew 9% to $6 billion, with $574 million net income.
UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 7% to more than 4 million members.
UPMC continues to advance patient care with capital expenditures totaling $186 million.
UPMC provided $1.7 billion in community benefits during Fiscal Year 2020.
$10.5 billion in cash and investments provide for long-term sustainability.
PITTSBURGH, May 28, 2021 – UPMC showed strong financial results for the first quarter of 2021 as it continues to invest in advancing world-class clinical care and community benefits in all of the regions it serves across Pennsylvania, western New York and western Maryland. Over the past year, UPMC has invested more than $1 billion to ensure clinical excellence. In addition, UPMC provided $1.7 billion in IRS-defined community benefits during Fiscal Year 2020.
For the first three months of Calendar Year 2021, UPMC had operating income of $288 million. Operating revenues increased 9% to $6 billion, with net income of $574 million. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew another 7% to more than 4 million subscribers.
Compared to the same period a year ago, UPMC outpatient revenue increased 8%, while physician revenue grew 4%; admissions and observations decreased by 4%. UPMC’s earnings before interest, depreciation and amortization (operating EBIDA)—a key measure of financial performance and the ability to generate the necessary resources for reinvestment—were $459 million.
The health system spent $186 million on capital expenditures in the first quarter. Major capital projects included ongoing construction for improvements and clinical service expansions at locations in every UPMC region in addition to technology infrastructure enhancements, including data analytics and other technologies that are transforming the patient experience across the spectrum of health care.
“In addition to ensuring the advancement of clinical care for our patients, UPMC has always been equally committed to serving the most pressing needs of the many diverse communities we serve outside of our hospital walls,” said Edward Karlovich, executive vice president and chief financial officer, UPMC. “In fact, UPMC provides more IRS-defined community benefits than any other health system in Pennsylvania. On a national level, UPMC leads other academic medical centers and large regional health systems in community contributions in both absolute numbers and as a percentage of net patient revenue.”
The newly posted Community Benefits Report shows that UPMC contributed $1.7 billion during the most recent fiscal year. That included $509 million in charity care and costs for those in need; $599 million for medical research and education; and $558 million for health and wellness programs and charitable contributions.
“UPMC provides the largest share of charity care in the western Pennsylvania region. While we care for 18% of patients in all of Pennsylvania, we provide 25% of the hospital charity care in the state,” said Leslie C. Davis, executive vice president, UPMC, and president of the Health Services Division. “In addition, we contribute 98% of all hospital-funded research in western Pennsylvania and more than half of all hospital-funded research in the entire state.”
Over the past five years, UPMC has provided $6.2 billion in IRS-defined community benefits and during that time UPMC’s $42 billion economic impact on western Pennsylvania has nearly doubled. UPMC paid $919 million in federal, state and local taxes last year, supporting more than one in four hospital jobs in the state.
“We are proud to keep advancing excellent clinical care for our patients while also serving as a powerful engine of progress, growth and prosperity for all of our communities throughout all of our regions,” Davis added.