- UPMC reported an operating income of $92 million on revenue of $4.6 billion in the first quarter of 2018 as it continues to benefit from its PinnacleHealth acquisition. The latest numbers compare to an operating income of $72 million on revenue of $3.7 billion in Q1 of 2017.
- Net income for the Pittsburgh-based system decreased at $97 million, down from $255 million in the same quarter last year.
- The health system also saw admissions and observations increase 22% year-over-year.
This was one of UPMC's most profitable quarters in seven years, according to the company's CFO, Rob DeMichiei.
Much of the health system's operating income growth stems from its acquisition of Harrisburg, Pennsylvania-based system PinnacleHealth last year. That acquisition was UPMC's largest-ever purchase and the first to include an entire health system.
The company also attributed the revenue boost to its growing health insurance plan. Medical insurance subscriptions increased 8% this quarter to 3.4 million subscribers.
UPMC is growing rapidly across Pennsylvania. The health system currently owns about 41% of the med-surg market in the western part of the state, including 58% in Allegheny, its home county. Rival Allegheny Health Network also reported a good first quarter, following layoffs earlier this year.
UPMC's earnings before interest, depreciation and amortization increased 23% to $245 million, compared to $199 million for the same quarter in 2017.