A growing insurance business and rising patient volumes at Allegheny Health Network helped boost Highmark Health’s first nine months.
Highmark Health, the parent company of the 14-hospital Allegheny Health Network, reported a profit of $431 million on $20.3 billion in revenue.
That’s an increase over the same period last year, when the Pittsburgh-based health care system reported a net loss of $268 million on revenue $19.5 billion in revenue. The year-ago figures included more than $670 million of unrealized investment impact driven by a decline in equity portfolio value.
Still, staffing shortages persist as the health care system tries to stabilize following the height of the covid-19 pandemic.
“Highmark Health isn’t immune to cost pressures other health care organizations are facing regarding persistent inflation and staffing challenges as the healthcare industry continues to normalize,” Carl Daley, chief financial officer and treasurer of Highmark, said on a conference call Wednesday.
Earlier this month, 1,200 nurses and nurse practitioners represented by SEIU Healthcare Pennsylvania and Allegheny General Hospital’s parent company, Allegheny Health Network, inked a 3-year contract that would, among other things, invest in wages and staffing at the North Side hospital.
During the first nine months of 2023, AHN saw patient volumes rise overall compared to the same period in 2022, with a 7% increase in inpatient discharges and observations, a 5% increase in outpatient registrations, a 4% increase in physician visits, and a 6% increase in emergency room visits.
The hospital system reported a loss of $144 million so far this year and operating revenue of about $3.5 billion.
The health care system’s insurance arm, Highmark Health Plans, reported an operating gain of $430 million so far this year. United Concordia Dental saw an operating gain of $74 million. Highmark’s IT services company, enGen, reported revenue of about $850 million.
