UPMC’s 2022 financial results show growth, sustainability

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Pittsburgh-based UPMC said its financial results for 2022 show continued growth and sustainability for western Pennsylvania’s largest health insurer.

According to the company in a release on Monday, the health insurer saw operating results of $238 million and an operating revenue of $26 billion. The company’s insurance services division grew 9 percent, UPMC said, to nearly 4.5 million members, up from 4 million. But, the company said, the results show it faces the same challenges other health systems nationwide face.

“During this difficult year in health care, our commitment to UPMC’s core mission did not wane. We substantially invested for the long-term, improving access to our clinical care and community services throughout all our regions with emphasis on meeting strong patient preference for care to be provided more conveniently in ambulatory settings closer to home,” said Edward Karlovich, executive vice president and chief financial officer of UPMC. “Patient volumes continued to shift from inpatient to outpatient settings.”

UPMC said its UPMC Health Plan enrollment increased due to growth across many products, including Medicare, behavioral health, and the statewide expansion of the Medicaid physical health managed care organization.

“UPMC’s successfully integrated provider-insurer model enables us to be strong and nimble in fulfilling our mission of always providing the very best, value-based clinical care where it is needed, even during challenging times,” said Diane Holder, president and chief executive officer of UPMC Health Plan.

The nation’s second-largest provider-owned health plan, UPMC Health Plan, earned national recognition for clinical quality in 2022 from the Pennsylvania Department of Human Services. Additionally, the health plan earned a five-star Medicare rating for the Centers for Medicare and Medicaid Services.

UPMC said it continued to advance patient care through $994 million in capital expenditures while maintaining $8.7 billion in cash and investments for long-term sustainability. Capital expenditures included the new UPMC Mercy Pavilion and the new UPMC Presbyterian Tower. UPMC also invested heavily in specialty care through the UPMC Hillman Cancer Centers in Somerset, Hanover, and Butler; UPMC Magee-Womens Specialty Services in Williamsport and Erie; heart and vascular services at UPMC West Shore and UPMC Jameson; UPMC Children’s at UPMC Harrisburg and Carlisle, and several other new outpatient multi-specialty care centers.