Pittsburgh-based UPMC reported $15 million in operating income (0.1 percent margin) for the six months ended June 30, an 82 percent drop from the $82 million operating income (0.7 percent margin) it posted for the same period in 2022, according to financial documents published Aug. 24.
For the six-month period, revenue increased 10.6 percent year over year to $13.8 billion while expenses rose 11.2 percent to $13.8 billion.
UPMC said the financial results reflect the ongoing challenges in the post-pandemic healthcare environment, including increased costs to deliver high-quality care.
After including the performance of its investment portfolio and other nonoperating items, the 40-hospital system reported an overall gain of $150 million in the first six months of the year, compared with a $844 million loss in the same period last year.
Since June 30, 2022, UPMC's health plan grew by 11 percent to more than 4.5 million members, with expansion of behavioral health and Medicaid products into new regions of Eastern Pennsylvania.
"With patient preference shifting from inpatient to outpatient care delivery closer to home, we continue to substantially invest to improve access to UPMC's clinical excellence and community services in ambulatory settings throughout all our regions," CFO Edward Karlovich said in a news release. "UPMC's $363 million in capital expenditures for the year's first six months are aimed at supporting the right level of patient-centered, high-quality, cost-effective care in the right places."
Capital projects include major construction and improvements at UPMC facilities in Central and North Central Pennsylvania, the new UPMC Mercy Pavilion and UPMC Presbyterian in Pittsburgh.