UPMC Revenue Increases 12% During 2020
Even during the COVID-19 pandemic, UPMC’s health care system had successful financial results in 2020.
On Friday, UPMC officials held an online news conference to discuss its financial results from last year. Edward Karlovich, UPMC executive vice president and chief financial officer, said the hospital system’s operating revenues increased to $23 billion in 2020, a 12% increase when compared to 2019. UPMC officials said the positive financial results last year were because of the benefits of its successful integrated delivery and finance system strategy as well as its strong clinical leadership throughout the COVID-19 pandemic.
“During this unprecedented year when COVID-19 dominated every aspect of our lives and greatly impacted our health care systems, UPMC clinicians and facilities have demonstrated unparalleled leadership and preparedness in safely delivering outstanding clinical care to both COVID and non-COVID patients,” he said.
Karlovich said that as a leading integrated provider and insurer, UPMC is well-positioned to “weather the storm,” both operationally and financially.
“While we remain prepared to address the challenges of the still-evolving pandemic, we continue doing what we always do — advancing our mission of providing research-based world-class clinical care and reinvesting in our hospitals and communities,” he said.
UPMC’s Insurance Services Division grew another 11% in 2020 and totals 4 million subscribers. Insurance Services results were favorably impacted by increased enrollment, improvement in the operating performance of the Community Health Choices product, and decreased expenses due to volume declines related to the COVID-19 pandemic.
“UPMC’s successfully integrated provider-insurer model enables our organization to be strong and nimble in fulfilling our mission of always providing the very best, value-based clinical care,” said Diane Holder, UPMC executive vice president and UPMC Health Plan president.
UPMC operations were impacted as a result of the COVID-19 pandemic, UPMC officials said. Primarily in response to directives from government officials in an attempt to quell the spread of the virus, UPMC’s Health Services division experienced reductions in volumes during the second quarter before volumes began returning to near pre-COVID-19 levels toward the end of June, and continued to rebound through year end.
UPMC continued to advance patient care with capital expenditures totaling $865 million as the health care provider continued enhancing facilities and adding clinical programs and services to extend quality care for patients and communities throughout its system. Such projects include the newly constructed $111 million inpatient tower at UPMC Hamot, which opened ahead of schedule to meet increasing demand.