Pittsburgh-based health insurer and provider Highmark Health has brought in $529 million in net income through the first three quarters of the year, according to its latest financial details released Tuesday.
That's on $22.1 billion in revenue through the first nine months of 2024 along with $273 million in operating gain.
Highmark said its financial performance is driven by its health plans along with increased volumes at its Allegheny Health Network (AHN). As of Sept. 30, the AHN saw a 3% increase in inpatient discharges and observations as well as 7% more outpatient registrations compared to the same time last year.
In addition, the AHN logged a 5% increase in physician visits and a 6% increase in visits to the emergency room.
Brian Devine, the AHN's chief financial officer, told Fierce Healthcare the system's volume growth highlights its investments in access and community reach.
"We're seeing that community access as an investment that's paying off in volumes and brand recognition," Devine said.
The AHN reported $120 million in earnings before interest, taxes, depreciation and amortization and $3.8 billion in revenue, up 9% year over year. The health system also improved its operating losses by 39% to $88 million.
Highmark Health Plans, meanwhile, posted $16.6 billion in operating revenue through the first three quarters along with $275 million in operating gain. The company said its insurance segment faced similar challenges to those reported across the industry, including the end of Medicaid redeterminations, rising utilization and higher pharmacy costs such as those for GLP-1s.
Carl Daley, chief financial officer and treasurer for Highmark Health, told Fierce the team expects these trends to persist into the next year.
"We’re hesitant to say where it will end, but we continue to monitor it and look to the future," he said.
Highmark's diversified businesses accounted for $3.1 billion in consolidated operating revenue through three quarters, the company said. This unit includes United Concordia Dental, enGen and HM Insurance Group.