- UPMC’s operating revenues grew by $77 million to $2.1 billion, with an operating income of $93 million.
- UPMC’s operating EBIDA – or cash flow income – of $190 million is on target to exceed $600 million for fiscal year 2011.
- UPMC’s $3.1 billion diversified investment reserve portfolio provides for long-term sustainability.
- UPMC continues to grow and invest in the region, with $87 million in capital expenditures for patient care, $135 million to fully protect its employees’ pensions and 257 new jobs created in first three months of fiscal year 2011.
- UPMC’s strong balance sheet and prudent fiscal management in the midst of uncertain economic and health care reform pressures allow it to be as well-positioned as any health care institution in the U.S.
PITTSBURGH, Nov. 12 – UPMC’s strong financial results for the first three months of fiscal year 2011 allow the global health enterprise to continue delivering excellent patient care while growing and enhancing its service programs, creating new jobs and reinvesting in the region.
UPMC’s operating revenues increased by $77 million to $2.1 billion for the period (July 1 through Sept. 30, 2010). Operating income grew by $28 million to $93 million. UPMC’s earnings before interest, depreciation and amortization (EBIDA) – a key measure of financial performance and the ability to generate the necessary resources for reinvestment – were $190 million for the first three months and are on target to exceed $600 million for fiscal year 2011.
These results enabled UPMC to spend $87 million in capital expenditures to enhance patient care through new technology, construction and renovations – creating additional jobs and new programs for the residents of western Pennsylvania.
UPMC created 257 new jobs in the first three months and anticipates creating another 558 new jobs through the end of fiscal year 2011. As the region’s largest employer, UPMC is committed to ensuring that its employees’ retirement plans are fully funded and, in August, contributed $135 million to its pension plans.
“UPMC’s responsible management and financial strength drives the organization’s ability to efficiently provide outstanding patient care in the best facilities with advanced technology,” said Robert A. DeMichiei, UPMC senior vice president and chief financial officer. “We are well-positioned to continue in that role while reinvesting in our region and our employees. What lies ahead with pending health care reform pressures and a still-lagging economy, however, will continue to present challenges.”
UPMC’s key operating metrics were up: Both outpatient activity and physician services activity increased 10 percent; enrollment in UPMC’s insurance services grew 5 percent to more than 1.48 million members; and the number of employed physicians grew 3 percent to 2,789.Total admissions and observations for the first three months of the fiscal year were up 1 percent compared to the same period a year ago.
UPMC’s diversified investment reserve portfolio stands at $3.1 billion, having achieved a 6.4 percent return for the first three months of the fiscal year. “Because we have been well-prepared to address the lingering uncertain economy and health care reform, UPMC does not need to draw on its long-term reserves to fund day-to-day operations, capital expenditures or employee pension investments,” said C. Talbot Heppenstall, Jr., UPMC senior vice president and treasurer. “UPMC maintains a long-term investment perspective.”
About UPMC
UPMC is an $8 billion global health enterprise with almost 50,000 employees headquartered in Pittsburgh, Pa., and is transforming health care by integrating 20 hospitals, 400 doctors’ offices and outpatient sites, a health insurance services division, and international and commercial services. Redefining health care by using innovative science, technology and medicine to invent new models of accountable, cost-efficient and patient-centered care, UPMC is taking medicine from where it is to where it needs to be. Learn more here.