UPMC reports strong growth in admissions, observation visits
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UPMC reported strong growth in admissions and observation visits during the first nine months of 2018.
The Pittsburgh-based academic health system says medical-surgical admissions and observation visits to its academic, community and regional hospitals grew by 20% year-over-year for the nine months ended Sept. 30, to 275,000 visits. Revenue from the health system's outpatient sector grew by 33% during that time including recent acquisitions, to almost $11 billion.
The health system grew its total operating revenue 22.3% year over year, to $13.9 billion for the nine-month period, from $11.4 billion in the nine months ended Sept. 30, 2017. Expenses rose 22.7% during that time, to $13.7 billion in the first nine months of 2018.
UPMC's operating margin was 1.4% as of Sept. 30, down from 1.7% at the same period in 2017. The health system drew $190 million in operating income in the first nine months of 2018, compared with $196 million during the same period in the prior year. Operating earnings before interest, depreciation and amortization were $658 million in the nine-month period ended Sept. 30, compared with $585 million in the prior-year period.
UPMC had 3.4 million members in its health plans as of Sept. 30 and revenue in the health system's insurance division grew by $1 billion year-over-year to $6.7 billion for the nine months. UPMC said the revenue increase was driven by membership growth of over 156,000. Operating income in UPMC's insurance division grew by $50 million year-over-year, which the health system attributed to higher underwriting income related to the higher membership.
UPMC reported a $91.6 million gain from investing and financing activities in the nine months ended Sept. 30, down significantly from $362.4 million during the same period in 2017.
On the volumes front, emergency room visits to UPMC hospitals grew by about 27% year-over-year for the nine-month period, to about 861,000. UPMC reported about 563,000 home health visits in the period, down 0.23% from the prior-year same period. Hospice care days rose 11% to about 160,000.
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