Highmark Health sees net income rise to $1.1B in 2017

Pittsburgh-based Highmark Health, the parent company of insurer Highmark and Allegheny Health Network in Pittsburgh, posted operating income of $616 million in 2017, up from $62 million in 2016.

The company's health plan business reported an operating gain of $750 million in 2017, an increase of $508 million over the year prior. "These gains were the result of significant progress in the government business, which delivered a $411 million improvement over prior year, as well as an increase in commercial business results of nearly $100 million to $317 million," Highmark said in a press release.

On the provider side, Allegheny Health Network reported revenues of $3.1 billion, up 8 percent from the year prior. The health system ended 2017 with operating income of $31 million, compared to an operating loss of $33 million in 2016. Highmark Health said several factors, including stable hospital volumes and more efficient revenue cycle operations, fueled AHN's strong financial results in 2017.

Highmark Health reported net income of nearly $1.1 billion in 2017, up from $59 million in the year prior.

"Thanks to our steady progress and continued momentum, we delivered our strongest financial performance and a capital level of $6.5 billion in 2017, confirming that our strategy is working and that consumers are benefitting from increased access to high-quality, community-based, affordable healthcare," said David Holmberg, president and CEO of Highmark Health. "While there is still work to do, we remain firmly committed to, and are well on our way toward, getting health care right."

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