- University of Pittsburgh Medical Center's third-quarter results were decidedly rosy, with its health insurance business burgeoning and profits from operations rising 69% thanks in part to extreme cost-cutting measures. "Every day is cost-containment day at UPMC," said Chief Financial Officer Robert DeMichiei.
- The company's insurance membership rose 5% to 2.35 million enrollees, bumping up its revenue 6% from the same period last year to $1.3 billion.
- Despite a 1% drop in patient volume, medical services contributed $69 million to a total $90.7 million in profit from operations.
Even with 2.35 million enrollees, this still puts UPMC at just about half of the volume of customers that its main rival, Highmark, has to its name. And Highmark is of course in the midst of developing its own provider chain with its recent purchase of the Allegheny Health System.
And Allegheny is doing pretty well. It reported a $72,000 loss from operations in the third quarter, compared to a $13.1 million loss in the same period last year. Officials credited increasing revenue and better expense controls. The company also saw its first net income profit under Highmark ownership: $4.5 million, compared to a $10.7 million loss last year.