One of Pittsburgh’s health giants has continued its turnaround from the pandemic, posting $529 million in profit through the first nine months of 2024.
Pittsburgh-based Highmark Health reported its multi-million profit Tuesday. The $529 million mark for the first nine months of this year is just a tick below the $533 million profit Highmark posted for all of 2023.
Highmark Health said it made over $22 billion in revenue through the first three quarters of 2024, which was a 9% increase year over year.
Carl Daley, chief financial officer and treasurer of Highmark Health, said he was pleased with the earnings, but added that there are financial headwinds facing the health care industry that could drag down future profits.
“These pressures developed earlier in the year, but they accelerated during the third quarter of 2024. As a result, we saw some deterioration in our operating gain primarily related to high prescription drug costs, the ongoing impact of Medicaid redeterminations, and the upward trend in health care utilization,” Daley said.
Highmark Health is the parent company of Highmark Inc., Allegheny Health Network, enGen and Helion. Highmark Inc. and its subsidiaries provide health insurance to 7 million people in Pennsylvania, West Virginia, Delaware and New York, as well as dental insurance and other health products.
The last two years have seen Highmark turn around from some pandemic era struggles. In 2022, Highmark reported a net loss of $346 million, driven by supply chain challenges, inflation, and higher labor costs and workforce shortages.
Some of those same pressures will remain, but Daley said Highmark’s diversified portfolio should adjust to those pressures.
Highmark Health Plans, the company’s health insurance arm, reported $275 million in operating gain in the first nine months of the year.
Allegheny Health Network, which operates hospitals in the Pittsburgh region, saw increased patient volumes across the board. That increase helped boost Allegheny Health Network’s revenue by 9% and stem losses the hospital arm has been experiencing since the pandemic.
AHN reported an $88 million operating loss for the first nine months of this year, a 39% improvement compared to the same time period last year.
Highmark Health maintained a balance sheet of $12 billion in cash and investments, and net assets of $10.5 billion as of the end of September.
