UPMC's operating income more than tripled through Q3

Through the third quarter of 2020, Pittsburgh-based UPMC saw its operating income more than triple, compared with the same period one year prior, according to recently released financial documents. 

The 40-hospital system recorded an operating income of $227 million in the nine months ended Sept. 30, up from $73 million in the same period one year prior. 

UPMC recorded operating revenue of $16.9 billion through the third quarter, an increase of $1.6 billion from the same period in 2019. The health system also saw its expenses rise 9.9 percent year over year to $16.7 billion.

UPMC attributed the revenue growth to an increase in its insurance division. Membership grew 9 percent through the third quarter. UPMC also recognized about $318 million in federal aid as other operating income in the nine-month period. 

But UPMC's net patient service revenue was affected by the pandemic. Specifically, its outpatient revenue fell  4 percent, physician revenue fell 6 percent, and admissions and observations fell by 11 percent through the third quarter, compared to the same period a year ago.

UPMC also recorded a $178 million loss from its financing activities for the nine months ended Sept. 30. This compares to a nonoperating gain of $214 million last year. 

Overall, UPMC ended the first nine months of this year with a net income of $263 million, a decrease of 11.7 percent compared to the same period last year. 

More articles on healthcare finance: 
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'You can't cut or shrink your way to greatness': University of Chicago Medical Center CFO on managing finances amid the pandemic
Connecticut launches bundled payment program

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