UPMC reported an operating income of $60 million for the first three months of the 2017 fiscal year, a drop of about $12 million from the same quarter last year.
Prescription drugs, physician retention, pension changes and the consolidation of Jameson Health System in New Castle reduced the income from a year ago, said Chief Financial Officer Rob DeMichiei.
The health system shared the results Wednesday for the three months that ended Sept. 30. Operating revenues rose to about $3.4 billion, from $3.1 billion for the same quarter a year ago.
DeMichiei said fallout from the split of Highmark and UPMC is helping to increase growth in UPMC Health Plan, where membership is up 7 percent over last year. A state consent decree preserved access to UPMC hospitals beyond 2016 for Highmark members considered “vulnerable,” including those receiving a “continuing course of treatment” from UPMC doctors.
The split is pushing more businesses to offer UPMC Health Plan in addition to Highmark, DeMichiei said. He said the city of Pittsburgh, Allegheny County, the Port Authority of Allegheny County, North Allegheny School District, the Diocese of Erie, Reading Hospital and engineering firm Michael Baker International are offering UPMC Health Plan to employees in 2017.
UPMC’s admissions and observation stays are up 5 percent, he said. Revenue from outpatient and physician treatment also was up, according to the financials.
Date:November 02, 2016