PITTSBURGH (August 30, 2022) — Highmark Health today announced consolidated financial results for the first six months of 2022, reporting $12.9 billion in revenue, an operating gain of $387 million, and a net loss of $174 million, which includes $460 million decline in unrealized equity market performance.
These results are due to the positive performance of the insurance business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by favorable claims and membership. Highmark Health’s provider network, Allegheny Health Network (AHN), experienced a slight increase in patient volumes year-over-year but faced continued cost pressures due to supply chain challenges, inflation, and higher labor costs.
Highmark Health maintained a strong balance sheet with $11 billion in cash and investments and net assets of $9.7 billion as of June 30, 2022.
"Highmark Health's strong, consolidated financial results reinforce that our blended health approach and diversified business operating model are solid both in our core markets and on a national scale. Despite challenges affecting the entire health care sector, we remain strategically and operationally focused on serving our customers, driving the purposeful execution of our Living Health strategy, and maintaining our holistic capital plan and strategy. We are built to weather these storms," said David Holmberg, president and chief executive officer of Highmark Health. "Whether it's through investments in patient access at AHN, strategic collaborations with health care and technology innovators, or enhancements aimed at better meeting the needs of our customers, Highmark Health is looking forward and building the future of health care."
"Highmark Health's diversified business model is key to our financial strength and stability. As we expected, Highmark Health delivered strong financial performance despite a challenging economic environment. Positive operational performance for our health insurance businesses drove these results," explained Saurabh Tripathi, executive vice president, chief financial officer and treasurer of Highmark Health. "We continue to address the cost pressures AHN faces through proactive operational and enterprise strategies."
The Highmark Health Plans reported an operating gain of more than $450 million for the first six months of 2022, primarily driven by robust performance in the commercial and government business and favorable claims development.
Highmark's diversified businesses reported combined earnings of more than $100 million through June 30, 2022.
United Concordia Dental extended its positive performance, delivering an operating gain of $68 million for the first six months of 2022. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $35 million for the same period.
enGen, formerly known as HM Health Solutions (HMHS), Highmark Health's information technology services company, whose platform serves approximately 11 million lives across the country, reported strong financial results in the first half of 2022 driven by higher platform enrollment and demand to support client projects.
AHN experienced losses before interest, taxes, depreciation, and amortization of $71 million for the first six months of 2022, as rising labor and supply chain costs continued to offset stable patient volumes. Excluding unrealized investment impact, AHN's EBITDA was $18 million. It reported an operating revenue of $2 billion for the period ending June 30, 2022.
For the first half of 2022, patient volumes rose overall compared to the same period in 2021, with a 2 percent decrease in discharges and observations, a 12 percent increase in outpatient registrations excluding vaccination appointments, a 3 percent increase in physician visits, and a 13 percent increase in emergency room visits. Births also increased 6 percent across the network compared to the first six months of 2021.
Highmark Health, a Pittsburgh, PA-based enterprise that employs more than 37,000 people who serve millions of Americans across the country, is the parent company of Highmark Inc., Allegheny Health Network, and enGen. Highmark Inc. and its subsidiaries and affiliates provide health insurance to approximately 6.8 million members in Pennsylvania, West Virginia, Delaware and New York as well as dental insurance, and related health products through a national network of diversified businesses. Allegheny Health Network is an integrated delivery network comprised of 14 hospitals, more than 2,500 affiliated physicians, ambulatory surgery centers, an employed physician organization, home and community-based health services, a research institute, a group purchasing organization, and health and wellness pavilions in western Pennsylvania. enGen's dynamic ecosystem of smart automation, and technology supports and streamlines complex operations for health plans and their provider partners. Founded in 2014 as HM Health Solutions (HMHS), enGen is a wholly owned subsidiary of Highmark Health. enGen has more than 3,500 employees and works with health care plans serving 11 million members nationwide. To learn more, visit Engen.health. Lumevity, a wholly owned subsidiary of Highmark Health, helps companies transform in ways that drive direct financial benefits while improving quality and increasing employee engagement. To learn more, visit www.highmarkhealth.org.