UPMC reports strong revenue, touts 'major announcement'
UPMC on Wednesday reported operating revenues of $3.9 billion for the fiscal year's first quarter while touting what officials described as a “major announcement” at the end of this week.
Gov. Tom Wolf, Pittsburgh Mayor Bill Peduto and Allegheny County Executive Rich Fitzgerald are expected to attend the unveiling at 2 p.m. Friday at the UPMC Shadyside campus.
UPMC President and CEO Jeffrey Romoff also will attend.
Officials declined to reveal additional details. The health system said it spent $168 million during the quarter that ended Sept. 30 on capital expenditures and business investments as it “continues to make significant advancements in facilities, equipment, technology, education and operational strategies to enhance patient care.”
UPMC reported an operating income of $62 million for the first three months of the 2018 fiscal year, an increase of about $2 million from the same quarter last year.
Its operating margin dropped slightly from 1.8 percent to 1.6 percent from the same quarter last year.
UPMC recorded a net income of $901 million, which was bolstered by a September merger with Harrisburg-based health system PinnacleHealth. The newly created UPMC Pinnacle serves a 10-county area at outpatient facilities and hospitals with 1,360 licensed beds.
In July, UPMC and the Butler Health System announced a joint obstetric- and gynecological-care venture for patients in the Butler area. In late Augst, UPMC opened a $19 million, 44,000-square-foot outpatient center in Hampton.
Membership in the UPMC Health Plan is up 7 percent over last year, according to the financial records.
“UPMC's ongoing strong financial performance allows us to advance our core mission of providing the high-quality, affordable health care far into the future for the growing number of diverse communities we serve,” said Robert DeMichiei, UPMC executive vice president and chief financial officer.
UPMC's admissions and observation stays were up 15 percent, according to the records. Revenue from outpatient and physician treatment also increased.
Ben Schmitt is a Tribune-Review staff writer. Reach him at 412-320-7991, firstname.lastname@example.org or via Twitter at @Bencschmitt.