PITTSBURGH (November 29, 2022) — Highmark Health today announced consolidated financial results for the first nine months of 2022, reporting $19.5 billion in revenue, an operating gain of $594 million, and a net loss of $268 million, which includes more than $670 million of unrealized investment impact driven by a decline in equity portfolio value.
These results are due to the solid performance of most business units, notably Highmark Health Plans, driven by favorable claims, and strong results in its diversified businesses due to continued positive performance in United Concordia Dental and HM Insurance Group. Allegheny Health Network (AHN) experienced relatively flat to slightly increased year-over-year patient volumes and ongoing cost pressures related to high labor costs, inflation, and supply chain challenges.
Highmark Health maintained a strong balance sheet with roughly $11 billion in cash and investments and net assets of over $9 billion as of September 30, 2022.
“Highmark Health isn’t immune to the headwinds other health care organizations are facing with regards to inflation, staffing challenges, and the difficult equity market. However, we maintain our strong consolidated financial position despite these challenges because our blended health and diversified business model works. Our balance sheet remains strong, and we’ve grown our consolidated operating revenues by 22% year-over-year,” shared Saurabh Tripathi, chief financial officer and treasurer of Highmark Health. “Robust operational performance in our insurance businesses drove these strong consolidated results. Highmark Health’s financial strength positions us well to continue investing in our Living Health model and the future of health care.”
“AHN continues to address ongoing cost pressures related to supply chain, inflation and staffing demands. As a part of Highmark Health, AHN is uniquely able to navigate these challenges and make strategic, future-state decisions with the best interests of our communities and patients in mind,” explained James Rohrbaugh, chief financial officer and treasurer of AHN. “Some recent examples of how we are delivering on that promise include launch of our online self-scheduling system for physician appointments and the openings of our Harmony outpatient center and AHN Montour Health + Sports Medicine Center.”
The Highmark Health Plans reported an operating gain of more than $600 million for the first nine months of 2022, primarily driven by strong performance in the commercial and government business and favorable claims development.
Highmark’s diversified businesses reported combined operating earnings of more than $150 million through September 30, 2022.
United Concordia Dental continues its strong performance, delivering an operating gain of $103 million for the first three quarters of 2022. Highmark Health’s stop loss business, HM Insurance Group (HMIG), reported an operating gain of $51 million.
enGen, Highmark Health’s information technology services company whose platform serves approximately 11 million lives across the country, reported solid financial results in the first three quarters of 2022 driven by higher platform enrollment and demand to support client projects.
AHN experienced losses before interest, taxes, depreciation, and amortization of $1 million for the first nine months of 2022, as rising labor and supply chain costs offset stable patient volumes. The health system reported operating revenue of $3.3 billion for the year through September 30, 2022.
For the first nine months of 2022, patient volumes remained relatively flat or slightly increased compared to the same period in 2021, with a 1 percent decrease in discharges and observations, a 12 percent increase in outpatient registrations excluding vaccination appointments, a 2 percent increase in physician visits, and a 10 percent increase in emergency room visits. Births also increased 6 percent across the network compared to the first nine 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. Founded in 2014 as HM Health Solutions (HMHS), enGen is a wholly owned subsidiary of Highmark Health whose dynamic ecosystem of smart automation, and technology supports and streamlines complex operations for health plans and their provider partners. 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.