UPMC net income hits $901M in Q1

Pittsburgh-based UPMC recorded $901 million in net income for the first quarter of fiscal 2018, up 255 percent over the same quarter last year.

Operating revenue was also up 14.6 percent year over year to $3.87 billion in the three months ended Sept. 30. The health system attributes this growth in part to its affiliation with Harrisburg, Pa.-based PinnacleHealth System, which was finalized Sept. 1. Admissions and observations were up 15 percent year over year, and the health system's insurance division recorded marked growth — 7 percent in the first quarter — to 3.2 million members.

"UPMC's ongoing strong financial performance allows us to advance our core mission of providing the high-quality, affordable healthcare far into the future for the growing number of diverse communities we serve," Robert DeMichiei, UPMC executive vice president and CFO, said in a press release.

Despite this growth, operating margins were slightly tighter in the first quarter of 2018 compared to the same quarter last year. UPMC's 2018 first quarter operating margin was 1.6 percent, compared to 1.8 percent last year. This was due to declining margins in the system's health services division, which was down to 0.4 percent in the first quarter of 2018 from 1 percent in the first quarter of last year. Its health services arm recorded $374 million more in revenues for this period compared to last year, but operating income was down due to inflationary expense increases.

 

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