UPMC reports revenue, hints at expansion beyond Pa.

As they reported financial results for the first half of 2018, UPMC officials alluded to plans to expand the system’s provider and insurance networks within Pennsylvania as well as into neighboring states such as Maryland, Ohio and New York.

“We’re running out of room in Pennsylvania. When you think about how close Hamot is to New York, how close Jameson is to Ohio, how close Altoona is to western Maryland, we see ourselves growing more and more over the next few years,” said Leslie Davis, UPMC’s executive vice president and COO of its health services division.

Hamot, Jameson and Altoona are cities in Pennsylvania where UPMC has hospitals.

Davis emphasized, though, that while the health care giant does offer insurance in the Philadelphia area, company leaders will avoid expanding UPMC’s provider arm into the region, citing the difficulty of the Philadelphia market.

The $19 billion-revenue health care provider and insurer plunged into Central Pennsylvania less than one year ago after it acquired Harrisburg-based PinnacleHealth in September 2017.

The deal also included hospitals in York, Lancaster and Cumberland counties

The acquisitions have proven rewarding, at least on the top line.


With 160,000 UPMC health plan members, Central Pennsylvania accounts for about one third of UPMC’s annual revenue, or about $3.2 billion. UPMC did not break out net earnings for the region.

For the six months ending June 30, UPMC’s operating revenues overall increased to $9.3 billion, up from $7.5 billion. 

Operating income reached $176 million for the first half of this year, up from $135 million for the same period last year.

UPMC’s insurance services division grew 7 percent to 3.4 million subscribers. UPMC’s admissions and observations increased 23 percent compared to a year ago.

As it continues to expand across the state, the health system spent $439 million on capital expenditures and business investments during the first half of 2018.

Excluding one particularly lucrative quarter in 2015, the last two quarters signified UPMC’s best since 2011, company officials said. 

With 85,000 employees, 40 hospitals, 600 doctors’ offices and outpatient sites, and a 3.4 million-member insurance services division, UPMC touts itself as the largest nongovernmental employer in Pennsylvania. 

Shelby White
Shelby White covers banking and finance, law and Lancaster County for the Central Penn Business Journal. For tips, email her at swhite@cpbj.com.

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