Highmark Health generates $627M in net revenue for first half of 2019

Hospital building
Allegheny Health Network generated $19 million in operating income through the first half of 2019 for parent company Highmark Health. (Allegheny Health)

Highmark Health reported earning $627 million in revenue over expenses for the first half of the year thanks to strong growth in the company’s commercial and government business.

The company earned $75 million more in the first half of 2019 compared to the same period in 2018. Total consolidated revenues were $9.2 billion in the first six months.

Highmark made major gains in both its commercial and government insurance plans. Overall, the company has 4.4 million health plan customers.


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The company’s commercial business delivered an operating gain of $151 million in the first half, according to a release. The government business that includes Medicare Advantage and Affordable Care Act exchanges also gained $269 million over the first six months of 2019.

RELATED: Highmark's revenue up $500M in 2018 even as insurance business declines

“This is due to the implementation of care management programs and designed benefits that encourage the use of lower-cost, higher-quality care options,” the company said. “These efforts result in savings for Highmark members through smaller premium increases—or even decreases—for health plan products and have led to a more stabilized risk pool and more appropriate pricing, particularly in the ACA business.”

Highmark’s provider arm, Allegheny Health Network, delivered $19 million in operating income through the first half of 2019, a decrease of $5 million compared to the year before. However, the provider’s net income was $47 million, which was an increase of $29 million compared to the same period in 2018.

RELATED: Highmark, Geisinger create joint venture community-based clinical network

A major reason for the change was debt restructuring through a $1 billion bond offered in August 2018.

Overall inpatient discharges plus observation cases grew by 4% and ambulatory surgery center cases grew 10.2% compared to 2018. Physician visits also exceeded 1.6 million, which Highmark reported was an 11% spike from 2018.

Highmark ended its yearslong legal battle with the University of Pittsburgh Medical Center back in June with a deal that extends network coverage to UPMC facilities for Highmark customers for 10 years.

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