UPMC reported higher revenue in the third quarter of 2019 than in the same period a year earlier, but the Pittsburgh-based health system's operating income declined year over year, according to unaudited financial documents.
Four things to know:
1. UPMC reported revenue of $5.1 billion in the third quarter of this year, up from $4.7 billion in the same period of 2018. Looking at the nine-month period ended Sept. 30, UPMC's revenue climbed 10 percent year over year.
2. UPMC's operating income totaled $76,000 in the third quarter of this year, down from $14.4 million in the third quarter of 2018. The system's operating income was down 51 percent year over year in the first nine months of this year.
3. The decline in UPMC's operating income for the three- and nine-month periods ended Sept. 30 was largely attributable to a $33 million hit from pension obligations and $26 million in costs associated with its contract with Community HealthChoices, Pennsylvania's managed care program, according to the Pittsburgh Post-Gazette.
4. UPMC ended the first nine months of this year with an operating margin of 0.6 percent, compared to 1.4 percent in the same period a year earlier. With income tax and interest expenses included, the system's operating margin was -0.2 percent in the first nine months of 2019, down from 0.4 percent a year earlier.
Access the full Pittsburgh Post-Gazette article here.
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