Here are five things to know about the health system’s 12 months ended Dec. 31, 2017, according to recent financial filings.
1. UPMC recorded operating income of $245 million on revenue of $15.6 billion in 2017, compared to operating income of $215 million on revenue of $13.4 billion in calendar year 2016.
2. The health system partially attributed the growth to its affiliation with Harrisburg, Pa.-based PinnacleHealth System, as well as its health plan. Admissions and observations increased 14 percent in 2017 compared to the prior year. Enrollment in UPMC’s health plan grew 8 percent to 3.4 million members in 2017 compared to 2016. Amid this growing health plan membership, UPMC has switched finances from a fiscal year to a calendar year so its provider arm and health insurance business are aligned, UPMC Executive Vice President and CFO Robert DeMichiei said, according to a Pittsburgh Post-Gazette report.
3. UPMC said it spent $736 million on capital expenditures and business investments in 2017. Last November, the health system revealed plans to invest $2 billion to build three digitally-centered specialty hospitals.
4. UPMC’s operating margin remained at 1.6 percent in 2017 compared to the year prior.
5. The health system ended 2017 with net income of $1.3 billion, compared to net income of $846 million in 2016. UPMC said this was “driven by strong operating and investing results, and augmented by the affiliation with UPMC Pinnacle.”
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