UPMC increases revenue in first quarter
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UPMC recorded operating revenue of $2.5 billion for the first quarter of the current fiscal year ending Sept. 30, a $39 million increase from the same quarter a year ago. Net revenue jumped to $180 million from a negative $120 million a year ago due to improved performance in the health system's $3.9 billion investment portfolio.
Operating income, though, fell from $155 million to $72 million, largely because of a one-time federal incentive payment last year and the health system's $25 million investment to recruit and retain physicians this year. UPMC has 3,321 employed physicians as of Sept. 30, compared with 2,954 a year ago.
Overall, it was "a very strong quarter," said UPMC Chief Financial Officer Robert A. DeMichiei, at a quarterly media briefing to discuss its unaudited financial results at UPMC executive headquarters in the U.S. Steel Building, Downtown, on Wednesday.
Combined patient admissions and observations are up, as well as outpatient revenue and physician service revenue. Inpatient admissions alone were down nearly 2 percent, from 47,171 in 2011 to 46,302. "We're not shrinking as much as the market is," said Mr. DeMichiei.
Membership in the UPMC Health Plan grew from 1.66 million subscribers a year ago to 1.96 million as of Sept. 30, and was a primary driver for the higher operating revenues.
Of special note, Mr. DeMichiei pointed to UPMC's $135 million in capital spending for the quarter, and a $135 million pension contribution that leaves employee pension plans 100 percent funded, he said.
UPMC's International and Commercial Services unit lost $2 million in the quarter, which Mr. DeMichiei said was "primarily related to costs associated with early stage development ventures" such as co-development projects with corporate partners GE and Nuance.
First Published November 8, 2012 12:31 am