Pittsburgh-based Highmark Health, the parent company of insurer Highmark and Allegheny Health Network in Pittsburgh, posted record revenue in 2018 but ended the year with lower net income than the year prior.
Eight things to know:
1. Highmark Health reported total operating revenue of $18.8 billion, up 2.8 percent from $18.3 billion the year prior.
2. The company's health plan business reported an operating gain of more than $510 million for the year ended Dec. 31, 2018, down from $750 million the year prior.
3. On the provider side, Allegheny Health Network reported total operating revenue of $3.3 billion, a nearly 7 percent increase year over year.
4. Allegheny Health Network also reported an operating gain of $39 million, up from $29 million in 2017.
5. Allegheny Health Network's strong financial results occurred amid a 2.4 percent increase in combined total discharges and observations and a nearly 4 percent increase in physician visits compared to the year prior.
6. Highmark Health ended 2018 with net income of $570 million, down from the nearly $1.1 billion record results in 2017, which included a one-time gain associated with the sale of portion of the vision business.
7. Highmark Health said in a press release that the company's sustained financial growth has allowed the organization to continue to make significant investments totaling more than $470 million in its integrated delivery and finance system. Key investments in Allegheny Health Network in 2018 totaled nearly $350 million, including investments to provide access to care closer to home such as four new neighborhood hospitals; five community cancer care centers and an academic cancer center at its flagship Allegheny General Hospital; new and renovated emergency departments; and enhanced women's health services.
8. David Holmberg, president and CEO of Highmark Health, said in the release: "We've made much progress in building a strong enterprise since we formed Highmark Health six years ago, as reflected in our strong 2018 financial performance improvements across all of our business units — the second highest results in company history, surpassed only by the record results we reported in 2017. People are staying with us and moving to us, and as a result, we believe we continue to be very well-positioned for the long term and remain on course to getting healthcare right for our customers, members and patients."
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