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UPMC touts growing North Hills hospital hub, $12B in midyear revenue

Natasha Lindstrom
| Friday, August 27, 2021 12:01 a.m.
Tribune-Review | File
UPMC Passavant hospital in McCandless is part of the Downtown Pittsburgh-headquartered health giant’s hub of hospital serviced being expanded in the North Hills.

UPMC executives boasted Thursday of “transforming” the health system’s North Hills footprint into a hub of innovative, high-demand health care services — such as robotic lung cancer detectors, more options for women and children, and a new mobile unit set to hit the streets next week.

“We’ve added an extremely high level of care to this community, and it stretches everywhere from pediatrics to oncology to liver surgery, and we will continue develop more out here,” said UPMC Chief Financial Officer Ed Karlovich. He referred to places from Cranberry to Ross and Allison Park, as well as those who travel from Butler, Beaver and Mercer counties.

The new additions across the likes of UPMC Passavant’s hospital campuses in McCandless and Cranberry — where tens of millions of dollars have been invested in recent years — are among indicators that the health system’s quest to invest in capital and grow market share were not significantly hampered by the covid-19 pandemic.

Rather, the nonprofit health giant appears on track to achieve another year of record-breaking revenue.

“I’m really so proud of our continuing financial strength,” newly installed UPMC CEO Leslie Davis said.

Total revenue from January through July amounted to $12 billion, data released Thursday by UPMC show.

The 2021 midyear total marks an 8% increase from $11.1 billion in total revenue that UPMC had generated as of the same time last year, and a nearly 18% increase from the same time in 2019.

“These results allow us to continue to deliver the highest quality care across all of UPMC and across all of the communities that we serve,” Davis said. “It also allows us to continue to invest in our life-saving expertise and medical innovation.”

The organization’s balance sheets have more than rebounded financially from the initial impacts of the covid-19 pandemic, unaudited financial statements provided by UPMC show.

UPMC reports 2021 midyear net income of $1.1 billion — a major swing from the $165 million loss reported between January and July 2020.

“We are constantly reinvesting our earnings back into our employee and patient experience to support advanced care and services for every community we serve,” Karlovich said.

Capital investments for the first half of this year totaled nearly $375 million.

Headquartered in Downtown Pittsburgh’s U.S. Steel Tower, UPMC employs more than 92,000 people, making it Pennsylvania’s largest non-government employer.

Its provider network spans 40 hospitals, more than 700 doctors’ and outpatient offices, 30 senior living communities and more than 70 cancer centers in Pennsylvania, Ohio, New York and Maryland.

UPMC’s insurance rolls have grown to more than 4 million members, and insurance revenue is up by about 5%, the financial statements show.

On the provider side, outpatient and doctor revenue increased by about 20% compared to the same time last year, and admissions and observations increased by 8%.

UPMC also benefited from a 6.7% return year to date on its $10.4 billion investment portfolio.

Last year, even amid the covid-19 pandemic and ensuing months-long restrictions on non-urgent procedures, UPMC generated $23.1 billion.

The combination of increased insurance revenue, federal assistance and more patients seeking care in recent years helped to more than offset losses spurred by the pandemic.

RELATED: Why ‘bailed-out’ hospital giants like UPMC thrived in 2020 while others floundered


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