UPMC’s Financial Results for 2021 Sustain Outstanding Care and Services for Our Communities Throughout COVID-19 Pandemic

UPMC Calendar Year 2021 Results

• Operating income of $843 million; operating revenue of $24 billion.
• UPMC Insurance Services Division, the largest medical insurer in western Pennsylvania, grew 3% to 4.1 million members.
• UPMC continues to advance patient care with capital expenditures totaling $782 million.
• $10.7 billion in cash and investments provide for long-term sustainability.

PITTSBURGH, Feb. 28, 2022 – UPMC's financial results for Calendar Year 2021 support the continuation of clinical excellence and programs for all the communities that need our care throughout the challenges of the evolving COVID-19 pandemic. UPMC continues to serve our patients and members as the region’s most preferred health care provider and insurer.

For the year, UPMC had operating income of $843 million and operating revenue of $24 billion. UPMC’s Insurance Services Division — the largest medical insurer in western Pennsylvania — grew another 3% to 4.1 million subscribers. Over the last five years, UPMC Health Plan membership has grown by more than 1 million.

“During the second year of this unprecedented time -- when COVID-19 dominated every aspect of our lives and greatly impacted our health care systems -- UPMC clinicians and staff have demonstrated unparalleled leadership and preparedness in safely delivering outstanding clinical care to both COVID and non-COVID patients,” said Edward Karlovich, executive vice president and chief financial officer, UPMC.

“UPMC served as a leading provider of vaccines and the latest evidence-based therapies for COVID-19, and as a trusted source for rapidly changing information on prevention and treatment in every region we serve,” Karlovich added.

“Meanwhile, UPMC never stopped providing essential, compassionate care to all, and we never stopped investing in the clinical advancements and scientific innovations needed now and in the future,” he said.

For the year, the health system invested $782 million to continue enhancing facilities and adding clinical programs and services throughout Pennsylvania and beyond. Such projects include construction and improvements at UPMC Pinnacle, UPMC Susquehanna and UPMC Mercy. Major information technology projects include enhancements to UPMC’s clinician-centric computing environment and investments in enterprise data analytics and other technologies that are transforming the consumer experience across the spectrum of care.

Amid nationwide health care staffing challenges, UPMC targeted investments of more than $350 million to bolster protective equipment, provide pay protection and enhance benefits for its dedicated workforce of 92,000 employees.

“UPMC’s successfully integrated provider-insurer model enables our organization to be strong and nimble in fulfilling our mission of always providing the very best, value-based clinical care, even during challenging times,” said Diane Holder, president and chief executive officer, UPMC Health Plan.

For example, to further support access to quality care during the pandemic and onward, UPMC Health Plan added nine clinical services to its synchronous video AnywhereCare platform. These include virtual counseling through Health Plan Member Services, Ask a Pharmacist, Lifestyle Health Coaching and Clinical Decision Support services.

UPMC Health Plan remained the region’s leader in commercial coverage, offering the lowest cost Affordable Care Act plans and providing coverage to more than 70% of western Pennsylvanians seeking on-exchange insurance, while UPMC for Kids remains the largest CHIP insurer in the state.

Community Care Behavioral Health, a Behavioral Health Managed Care Organization, reached record enrollment of more than 1.25 million Medicaid members and partners with 42 Pennsylvania counties.

A new program, “Pathways to Work,” led through the Center for High-Value Health Care’s UPMC Center for Social Impact, has helped more than 2,000 Medicaid members obtain employment at UPMC since the program launched in March 2021.

About UPMC

A $24 billion health care provider and insurer, Pittsburgh-based UPMC is inventing new models of patient-centered, cost-effective, accountable care. The largest nongovernmental employer in Pennsylvania, UPMC integrates 92,000 employees, 40 hospitals, 800 doctors’ offices and outpatient sites, and a 4.1-million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. In the most recent fiscal year, UPMC contributed $1.7 billion in benefits to its communities, including more care to the region’s most vulnerable citizens than any other health care institution, and paid more than $900 million in federal, state and local taxes. Working in close collaboration with the University of Pittsburgh Schools of the Health Sciences, UPMC shares its clinical, managerial and technological skills worldwide through its innovation and commercialization arm, UPMC Enterprises, and through UPMC International. U.S. News consistently ranks UPMC Presbyterian Shadyside among the nation’s best hospitals in many specialties and ranks UPMC Children’s Hospital of Pittsburgh on its Honor Roll of America’s Best Children’s Hospitals. For more information, go to UPMC.com.

Additional Resources

• UPMC Quarterly Disclosure (PDF) for the period ended December 31, 2021

• Fourth Quarter 2021 financial results support slides (PDF)