The University of Pittsburgh Medical Center recorded a decline in operating income of over 80 percent, and the system lost over $240 million in investing and financing during the first quarter, according to the company's earnings report released May 26.
The provider-payer cited the effect of COVID-19 and the most recent surge, along with labor conditions and supply markets as the reason for increased employment, staffing and operating expenses that have exceeded growth in revenue.
Six things to know:
- Operating income in 2022 was $50 million, compared to $288 million during the same period in 2021, an 82.6 percent decrease.
- Operating revenue was nearly $6.1 billion in the first quarter, increasing from $6.02 billion year over year, a 1.3 percent increase.
- The system lost $242 million in the first quarter from investing and financing activities. In the first quarter of 2021, the company made $326 million from investing and financing activities.
- Construction is ongoing at the new UPMC Mercy Pavilion, a nine-story, 410,000-square-foot tower that will serve patients who need physical rehabilitation or eye care. The facility will also include research space.
- In March, UPMC reopened the Matilda H. Theiss Health Center in Pittsburgh’s Hill District neighborhood after renovations.
- In February, UPMC opened a primary and specialty care outpatient center in Sewickley, Pa.