UPMC, a 40-hospital system based in Pittsburgh, saw its net loss reach $653 million in the first quarter of 2020, according to financial documents released May 29. This compares to a net income of $289 million in the same period in 2019.
The health system said the net loss resulted from a loss in patient revenue and volatility in the markets due to the COVID-19 pandemic. The system said it lost about $150 million in patient service revenue during the last two weeks of March and recorded $799 million in losses from investing and financing activities in the three-month period ended March 31.
In the first quarter of this year, UPMC recorded revenue of $5.5 billion, an increase of 9 percent from the same period one year prior.
UPMC's expenses also rose in the quarter, to about $5.6 billion. This compares to $5 billion in the same period one year prior.
The hospital system ended the period with an operating loss of $41 million. Its health services division saw an operating loss of $80 million, while its insurance division saw an operating gain of $39 million.
To help offset some of the losses attributed to the pandemic, 92 UPMC hospitals and other facilities received a total of $255 million from the Coronavirus Aid, Relief, and Economic Security Act.