UPMC reports $16B in revenue, $1.3B in profit for 2017: 5 things to know

Pittsburgh-based UPMC saw net income rise 50 percent in calendar year 2017 with operating revenue and operating income both increasing compared to the prior year.

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."

 

 

More articles on healthcare finance:

5 hospitals with strong finances
LifePoint slips to $27.5M net loss in Q4
IU Health's net income more than triples: 7 things to know

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months