Pittsburgh-based UPMC posted an operating income of $237 million (2.9% operating margin) in the first quarter of 2025, up from an operating loss of $103 million (-1.4% margin) during the same period last year, according to its May 29 financial report.
UPMC said its improved operating results were primarily driven by increased inpatient and outpatient volumes, improved underwriting in its insurance division, and gains on dispositions of approximately $69 million.
“Further strides were made in reducing operational expenses from ongoing efficiency measures, continuing a strong improvement from prior year,” the report said.
The system reported total operating revenues of $8.2 billion for the three months ended March 31, up from $7.1 billion during the same period last year. Net patient service revenue was $3.2 billion, up from $2.9 billion. Insurance enrollment revenue was $4.3 billion, up from $3.7 billion.
Operating expenses totaled $8 billion in the quarter, up from $7.2 billion during the same period in 2024. Salaries, professional fees and benefits totaled $2.6 billion, up from $2.5 billion. Insurance claims expenses dipped to $3.1 billion from $3.7 billion. Supplies, purchased services and general expenses totaled $2.1 billion, up from $1.9 billion.
Broken down by division, UPMC’s health services division reported an operating income of $142 million and its insurance division reported an operating income of $95 million. Those figures are up from operating losses of $101 million and $2 million, respectively, during the same quarter in 2024.
As of March 31, UPMC had 78 days cash on hand, down from 93 on Dec. 31.
UPMC reported a net income of $113 million in the first quarter of 2025, up from a net loss of $24 million during the same period in 2024.
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