Pittsburgh-based UPMC recorded an operating income of $286 million (0.9% operating margin) in 2025, an improvement from an operating loss of $339 million (-1.1% margin) in 2024, according to its Feb. 27 financial report.
Five things to know:
1. UPMC said its $625 million operating improvement in 2025 was primarily driven by improved underwriting margin in its insurance division, along with enterprise-wide initiatives to reduce operational expenses through efficiency measures.
2. The system reported total operating revenue of $33.6 billion for the 12 months ended Dec. 31, up from $29.9 billion during the same period in 2024. Net patient service revenue was $13 billion, up from $12.2 billion. Insurance enrollment revenue was $17.6 billion, up from $15.1 billion.
3. Total operating expenses were $33.2 billion in 2025, up from $30.1 billion in 2024. Salaries, professional fees and benefits were $10.4 billion, up from $10 billion. Insurance claims expenses were $13.1 billion, up from $11.2 billion. Supplies, purchased services and general expenses were $9.1 billion, up from $8.2 billion.
4. UPMC reported $30 million in restructuring costs in 2025, compared to $128 million in 2024.
5. After accounting for nonoperating items, such as investment returns, UPMC reported a net income of $635.4 million in 2025, up from a net loss of $14.7 million in 2024.
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