Highmark Health’s Q1-Q3 2023 results showcase a revenue of $20.3 billion and a $431 million net income. The surge in healthcare utilization, particularly in Allegheny Health Network (AHN), drove increased inpatient discharges, outpatient registrations, and emergency room visits. CFO Carl Daley noted the trend aligns with industry observations of patients seeking deferred care. AHN’s CFO, James Rohrbaugh, affirmed this rebound in utilization, foreseeing its continuation. Despite inflationary pressures, AHN’s $3.5 billion revenue offset costs. The Health Plans’ $430 million operating gain resulted from membership growth offsetting increased claims. Overall, Highmark’s performance reflects a healthcare resurgence aligning with broader industry patterns.
Highmark Health’s Q1-Q3 2023 financial report unveils impressive revenue of $20.3 billion and a net income of $431 million. This exceptional performance primarily stems from heightened healthcare utilization across its insurance segments and Allegheny Health Network (AHN). The increased inpatient discharges, outpatient registrations, and emergency room visits signify a substantial rebound in healthcare services deferred during the pandemic. Such trends resonate with observations made by industry peers, indicating a collective resurgence in patient care-seeking behavior. These findings highlight a pivotal shift in healthcare utilization dynamics, reflecting a broader pattern witnessed across the healthcare industry.
Highmark Health disclosed a noteworthy financial performance, revealing a robust revenue of $20.3 billion and a net income of $431 million for the initial three quarters of 2023.
The company’s commendable showing primarily stemmed from positive outcomes across its insurance segments. Notably, the core health plan, United Concordia Dental, and HM Insurance Group contributed significantly to this success. In addition, the healthcare system under Highmark, Allegheny Health Network (AHN), experienced heightened activity resulting in increased revenue.
AHN witnessed a considerable surge in various metrics compared to the same period in 2022, showcasing a 7% rise in inpatient discharges and observations. Outpatient registrations and physician visits also climbed by 5% and 4%, respectively. Furthermore, there was a notable 6% upturn in emergency room visits, reflecting a substantial increase in healthcare utilization, as highlighted by Highmark.
Carl Daley, Highmark Health’s Chief Financial Officer, and Treasurer, emphasized during a recent conference call that these trends align with observations made by industry peers. Patients are progressively seeking medical services deferred during the COVID-19 pandemic, resulting in a substantial resurgence in healthcare utilization.
“The return of utilization on the healthcare side indicates a significant increase in patients seeking care that might have been postponed during the pandemic,” Daley remarked. “This trend has been widely observed across various healthcare payers.”
Echoing similar sentiments during the call, AHN’s Chief Financial Officer, James Rohrbaugh, cited the rebound in utilization, notably seen in orthopedic procedures among Medicare Advantage enrollees, which were frequently postponed during the pandemic.
Rohrbaugh remarked, “The increased utilization aligns with our initial projections for the year, and we anticipate this trend will persist throughout the remainder of the year.”
AHN reported $3.5 billion in revenue during the initial nine months, accompanied by $64 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). Highmark underscored that the heightened utilization effectively countered the cost challenges arising from persistent inflationary pressures.
Highmark Health Plans exhibited a commendable operating gain of $430 million throughout the first three quarters of the year. This success was underpinned by sustained annual membership growth, mitigating the impact of increased claims owing to heightened healthcare utilization, as indicated in the earnings report.
Overall, Highmark Health’s exemplary financial performance for Q1-Q3 2023 underscores a remarkable resurgence in healthcare utilization, mirroring industry-wide patterns. The surge in patient visits across AHN and other segments reflects a significant return to seeking deferred medical services, aligning with broader healthcare trends observed post-pandemic. CFO insights from Carl Daley and James Rohrbaugh affirm this trend’s sustainability, projecting continued utilization growth. Despite inflationary challenges, AHN’s revenue offset costs, while membership growth mitigated increased claims in Health Plans. Highmark’s robust performance signifies a transformative shift in healthcare utilization, demonstrating its adaptability amid evolving industry dynamics.