Highmark's revenue grew 18% in 2022 despite investment losses, provider headwinds

Highmark Health's revenue grew 18% in 2022, reaching $26 billion, the Pittsburgh-based Blues plan announced Monday.

That growth is backed by the performance of its health plan and other diversified businesses, such as United Concordia Dental. While Allegheny Health Network, the company's health system, has seen patient volumes rise, it continues to face the hurdles roiling the provider market: labor shortages, inflation and supply chain issues.

CEO David Holmberg told Fierce Healthcare in an interview that Highmark's diversity gives it the "flexibility" needed to weather challenges in the provider space.

"The way we think about it is: All of these different entities enable us to be transformational," Holmberg said.

AHN reported $19 million in earnings before interest, taxes, depreciation and amortization as the rising labor and supply chain costs offset more stable patient volumes. Patient volumes increased overall compared to 2021, with outpatient registrations up 8% and physician visits up 3%.

Emergency department visits increased by 7%, while inpatient discharges and observations remained largely flat, according to the report. Births increased by 5% as well, Highmark said.

At Highmark Health overall, operating gain was $440 million and net earnings were $47 million when excluding unrealized investment impact. With that impact included, the company posted a $346 million net loss.

The company reported $11 billion in cash and investments and $9 billion in net assets as of Dec. 31.

Thanks to this financial performance, Highmark provided $300 million in community support—including charity care, uncompensated care and corporate giving—as well as invested $900 million toward building its blended healthcare model.

Holmberg said the company is "well built" for the headwinds the industry is facing.

"We're financially in a great place," he said.