UPMC banks on diversity
By Alex Nixon
Published: Saturday, May 11, 2013, 12:01 a.m.
UPMC is turning to its international and commercial businesses to diversify revenue sources and ease the pressures of lower payments and a shrinking patient market.
Western Pennsylvania's largest health system said Friday it formed a consulting business that will help hospitals around the world expand their medical services, plan for facilities, develop research programs and implement technology.
“UPMC's reputation for clinical excellence and innovation continues to attract a growing number of partners who want advisers with deep health care expertise and experience in overcoming the same challenges they face,” said Charles Bogosta, president of UPMC's International and Commercial Services Division.
The division includes UPMC facilities in Ireland, Italy and other countries, as well as for-profit joint venture businesses that UPMC established with companies such as General Electric, IBM and Alcatel-Lucent.
The overseas medical centers have returned $60 million in profit to UPMC since 2008, Bogosta said. Its commercial businesses added $153 million in profit in that time frame, he said.
“Being diversified has put us in a solid position,” Bogosta said of UPMC's finances.
UPMC, which owns 19 hospitals in the region and employs more than 56,000 people, reported lower profit on Thursday because of higher costs. Net income was $170 million in the January-March quarter, down 19 percent from the previous year.
Although the hospital network continues to make money, it is affected by cuts in Medicare and Medicaid funding and fewer people seeking medical care.
Most hospitals are experiencing that, but UPMC's size and financial strength allows it expand into other areas. UPMC reported $10 billion in revenue last year, and its investment portfolio was valued at $4 billion as of March 31.
The consulting business, UPMC Advisory Services, began with two contracts, Bogosta said.
The company will help Nazarbayev University in Kazakhstan set up cancer centers around the central Asian country of more than 17 million people. It will work with a Citizens Hospital in Hyderbad, India, to create a laboratory for diagnosing diseases.
Advisory Services is focusing its consulting services on oncology, health information technology, pediatrics and health security, which involves being prepared for bioterrorism and large-scale health emergencies.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Range looks to sell Texas drilling assets
- Firms transmit market data at near light speed
- Crown Castle to grow
- European officials fine first U.S. banks in rate rigging scandal
- Generic drugmaker Mylan completes $1.75B acquisition in India
- Madoff cut dead client’s payout by creating fake loss, jury told
- Many tellers just scraping by
- Fast-food workers to walk out, demanding higher pay
- Railroad entrepreneur Henry Posner recovers $14.6M from Guatemala
- Stocks struggle as investors weigh economic news
- Fed says economy ‘trudging’ on