“Ongoing pressures in the labor and supply markets as a result of inflation continue to have a negative impact on operating income as do lower Medicare and Medicaid product underwriting margins,” UPMC said in the report.
The health system saw operating revenues of $7.1 billion in the three-month period ended March 31, up from $6.9 billion posted over the same period in 2023.
Net patient service revenues were $2.9 billion, up from $2.7 billion year over year. Insurance enrollment revenues were $3.7 billion, compared to $3.5 billion posted over the same period last year.
Total operating expenses were $7.2 billion, up from $6.8 billion over the same period in 2023.
Salaries, professional fees and benefit expenses were $2.5 billion, up from $2.4 billion last year. Supplies, purchased services and general expenses were $1.9 billion in the quarter, up from $1.8 billion in the same quarter in 2023. Insurance claims expenses were $2.6 billion, up from $2.4 billion last year.
After accounting for nonoperating items, such as investment returns, UPMC ended the quarter with a net loss of $24 million, down from a net gain of $191 million in the same quarter last year.
As of March 31, UPMC had more than $9.4 billion in cash and investments, $3.2 billion of which was held by its regulated health and captive insurance companies.
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