UPMC's annual operating income dips 32%

UPMC reported higher revenue in 2018 than in the year prior, but the Pittsburgh-based health system's operating income declined year over year.

Four things to know:

1. UPMC reported revenue of $18.8 billion in 2018, up from $15.6 billion in 2017.

2. The revenue boost was largely attributable to patient volume growth and higher enrollment in the system's health insurance plan. Medical-surgical admissions and observation visits at UPMC's hospitals were up 15 percent year over year in 2018.

3. After factoring in expenses, which climbed 21 percent year over year, UPMC ended 2018 with operating income of $166 million. That's down $80 million, or 32 percent, from 2017.

4. The system reported a 0.9 percent operating margin for 2018, down from a 1.6 percent operating margin in 2017.

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