Highmark Health’s H1 2023 revenue soared to $13.6B with $389M net income, driven by thriving core health plans, United Concordia Dental, and increased volumes at Allegheny Health Network. The network reported an 8% rise in inpatient discharges, 6% in outpatient registrations, physician visits, and an 8% increase in ER visits. Amid Medicare Advantage concerns, CFO Ja’Ron Bridges stated utilization aligned with expectations. CEO David Holmberg emphasized transformation and financial discipline for healthcare innovation and improved service.
Highmark Health has announced robust financial results for the first half of 2023, with revenues totaling $13.6 billion and a net income of $389 million. These positive outcomes can be attributed to strong performance across various segments within the organization. Notably, Highmark’s core health plan and United Concordia Dental segments have significantly contributed to these achievements.
A notable driver of increased revenue is the Allegheny Health Network, where patient volumes have shown a year-over-year rise. The health system reported impressive growth, including an 8% increase in inpatient discharges and observations, a 6% rise in outpatient registrations, a 6% uptick in physician visits, and an 8% surge in emergency room visits across the network.
The Allegheny Health Network has demonstrated solid financial performance as well, with earnings before interest, taxes, depreciation, and amortization reaching $68 million for the first half of the year, accompanied by an operating revenue of $2.3 billion.
Highmark Health Plans have also contributed significantly to the organization’s success, reporting an operating gain of $237 million in the first half of the year. This growth is supported by a strong and growing annual membership base.
Amidst concerns about increased utilization among Medicare Advantage enrollees, Ja’Ron Bridges, the Chief Financial Officer for Highmark Health Plans, indicated that overall utilization remains consistent with the company’s expectations. While there are certain areas of heightened activity, these patterns align with national trends and are generally in line with pre-pandemic levels.
United Concordia Dental, a part of Highmark Health, reported a commendable operating gain of $40 million during the first half of the year.
Highmark Health’s CEO, David Holmberg, emphasized the company’s dedication to transformation within the healthcare landscape. He highlighted their commitment to innovation, both in terms of financial strategies and a reimagining of healthcare paradigms. Holmberg stressed the importance of reshaping the organization itself to better serve the population and effect meaningful change within the broader health ecosystem.
