UPMC, based in Pittsburgh, has reported a 1.7 percent operating margin for the fiscal year ended June 30, up from a 1.3 percent margin for FY 2013.
UPMC's excess of revenue over expenses for 2014 was $567 million, compared with $414 million the previous year. The healthcare provider and insurer saw its operating revenues rise to approximately $11.42 billion in FY 2014, up 12.1 percent from 2013. Operating EBIDA also rose to $644 million, compared with $556 million the previous year. The rise in revenues resulted from growth in insurance services and higher patient volumes. Hospital medical-surgical admissions and observation cases went up by 8 percent year-over-year, and enrollment in UPMC's Insurance Services increased by 9 percent to more than 2.3 million members.
UPMC reported $11.23 billion in total operating expenses for FY 2014, up 11.6 percent from $10.06 billion in 2013. Salaries, professional fees and benefits increased by 11.4 percent to $4.44 billion in 2014. The cost of supplies, purchased services and general expense also went up by 12.1 percent year-over-year to $6.33 billion.