UPMC annual operating revenue hits $23B: 5 notes

Pittsburgh-based UPMC saw its operating revenue grow 12 percent to $23 billion in 2020, according to recently released financial documents. 

Five things to know:

1. The 40-hospital system attributed the 2020 revenue growth largely to its insurance division, which grew 11 percent and has 4 million beneficiaries. 

2. UPMC's health services division saw patient volume affected by COVID-19, including a drop in volume during the second quarter. But the division saw patient volume return to pre-COVID-19 levels toward the end of June and steadily rebound for the remainder of the year. 

3. For 2020, UPMC recorded an operating income of $836 million. In 2019, UPMC recorded $27 million in operating income on revenue of $20.6 billion. UPMC added that it has since reclassified expenses, which made its 2019 operating income $239 million.

4. UPMC spent $865 million on capital expenditures in 2020. 

5. "As a leading integrated provider and insurer, we are well-positioned to weather the storm, both operationally and financially. While we remain prepared to address the challenges of the still-evolving pandemic, we continue doing what we always do — advancing our mission of providing research-based world-class clinical care and re-investing in our hospitals and communities," Edward Karlovich, executive vice president and CFO of UPMC said. 

More articles on healthcare finance:
House passes $1.9 trillion COVID-19 relief package
Georgia health system warns patients of billing scam
Mayo Clinic annual revenue grows to $13.9B

 

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