UPMC reaches $23B in annual revenue thanks to increases from UPMC Health Plan

PITTSBURGH — UPMC’s annual operating revenue jumped 12% to $23.1 billion in the pandemic year of 2020, led by strong growth from UPMC’s insurance services division to the point where the organization’s patient service revenue was exceeded by insurance services revenue in the year.

Revenue was up from $20.6 billion in 2019, despite the pandemic. UPMC Health Plan’s revenue on a consolidated basis was $11.4 billion for the year, up from $9.8 billion in 2019, as insurance membership rose 11% to 4 million members in western Pennsylvania alone.

Net patient service revenue was more impacted by the pandemic, growing slightly from $9.1 billion in 2019 to $9.2 billion in 2020, the impact of a 3% year-over-year fall in outpatient revenue, a 5% drop in physician revenue and a 10% drop in admissions and observations due to the spring, when the emergence of Covid-19 led the state to sharply reduce elective surgeries and procedures from March through June and left some patients concerned about visiting health care providers.