Pittsburgh-based UPMC saw its net income reach $1.2 billion through the first nine months of 2021, driven by strong operating and investment gains, according to its financial report. In the same period last year, UPMC had a net income of $263 million.
The health system, which has more than 40 hospitals and 700 clinical locations, recorded an operating revenue of $18.3 billion through the nine months ended Sept. 30. In the same period last year, UPMC recorded operating revenue of $16.9 billion. UPMC attributed the revenue increase to membership growth for its insurance division and growth in health services. In particular, UPMC said outpatient revenue increased 17 percent, physician services revenue grew 12 percent, and admissions and observations increased by 5 percent through the third quarter of 2021 when compared to the same period last year.
UPMC saw its expenses rise about $1 billion year over year to $17.5 billion. The health system spent more in the nine months ended Sept. 30 on salaries and benefits, insurance claims expenses, and supplies.
Through the third quarter of 2021, UPMC recorded an operating income of $798 million, more than double the $397 million recorded in the same period in 2020.
UPMC also realized $557 million in investment gains and other nonoperating items through the third quarter of 2021. In the same period last year, UPMC posted a $178 million loss from its nonoperating activities.
UPMC said it also spent $552 million on capital expenditures in the first nine months of 2021, including new facilities for patient care and technology enhancements. It also recently announced a $300 million investment into its workforce, including one-time $500 appreciation bonuses.
"UPMC's continuously strong financial results for the first nine months of 2021 underpin its robust investment in caring for its 92,000 employees as well as the growing number of patients throughout all the communities UPMC serves during the still-evolving COVID-19 pandemic," the health system said.