UPMC reported higher revenue in the first half of this year than in the same period of 2019, but the Pittsburgh-based health system’s operating income declined year over year, according to unaudited financial documents.
UPMC reported revenue of $11.1 billion in the first six months of this year, up nearly $1 billion from the same period of 2019. A year-over-year decline in net patient service revenue attributed to volume declines linked to the COVID-19 pandemic was offset by gains in insurance enrollment revenue. Enrollment in UPMC’s health plans grew to 3.9 million members as of June 30.
Expenses also increased year over year. UPMC reported operating expenses of $11.1 billion in the first half of this year, up from $10.1 billion a year earlier. Operating income for the first two quarters of 2020 totaled $59 million, down $20 million from the same period last year.
The health system ended the first half of this year with a net loss of $165 million, compared to net income of $372 million a year earlier. The net loss was attributed to a $423 million loss on investments from January through July.
Though UPMC continues to experience some disruption to operations as a result of the COVID-19 pandemic, the system’s interim CFO Edward Karlovich said it’s on solid financial footing.
“We’re positioned with an organization of great financial strength to deal with what comes at us,” Mr. Karlovich said during a news conference Aug. 26, according to TRIBLive.