Especially in eastern Pennsylvania, more people are taking advantage of UPMC’s insurance options.
The Pittsburgh-based healthcare giant reported an 11% increase in policy enrollment, bringing it to nearly 4.5 million members in the first half of 2023.
UPMC attributes growth to the expansion of behavioral health and Medicaid products into the eastern part of the state.
But that growth put pressure on profits.
UPMC said in its quarterly financial report that operating profit declined in the six months ended June 30 compared to the same period last year due to an increase in the number of people using insurance products.
Operating income for the first half of the year was $15 million, down from $82 million in the same period last year. Revenue increased to $13.8 billion from $12.5 billion in the same period last year.
UPMC is the second largest provider-owned health plan in the nation. Penney’s private market product, a Pennsylvania-based exchange, serves more than 98,000 members, and he added more than 21,900 members in the first half of this year. Overall, his six-month operating income for insurance services decreased by $74 million compared to the same period last year due to increased usage.
In June, UPMC Western Behavioral Health in Twin Lakes, Somerset, opened to increase access to substance abuse disorder treatment.
The $16 million expansion project includes a 19,300-square-foot building and renovation of existing facilities. According to UPMC, this will increase the number of beds by 60% and create new jobs in the area.
In the first six months of the year, the number of hospital admissions and follow-up visits increased by 2%, and the number of outpatients increased by 9%.
“As patient preferences shift from inpatient to outpatient care closer to home, we are committed to UPMC’s clinical excellence in ambulatory settings in all regions,” said Edward Karlovich, Executive Vice President and Chief Financial Officer. We continue to make significant investments to improve access to services and community services.” of UPMC.
“UPMC’s $363 million capital expenditure in the first half of this year is aimed at supporting patient-centered, high-quality, cost-effective care at the right place and at the right level,” Karlovic said. said.
Capital projects include extensive construction and improvements to UPMC facilities in Central and North Central Pennsylvania, the new UPMC Mercy Pavilion, the UPMC Presbyterian Church, and the expansion and enhancement of the entire healthcare system.
Stephanie Litenbaugh is a staff writer for Tribune Review. Please contact Stephanie at [email protected].
