Highmark Health First Quarter 2023 Financials
PITTSBURGH (May 31, 2023) — Highmark Health today announced consolidated financial results for the first three months of 2023, reporting $6.7 billion in revenue, an operating gain of $136 million and net income of $227 million.
These results are due to the positive performance of most business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by increased annual membership as customers chose our plans due to their more affordable options and improved care management. Highmark Health's provider network, Allegheny Health Network (AHN), saw increased patient volumes year-over-year, which bolstered revenue.
Highmark Health continued to address cost pressures due to supply chain challenges, inflation and labor shortages while maintaining a strong balance sheet with $11 billion in cash and investments and net assets of more than $9 billion as of March 31, 2023.
"For the first three months of 2023, Highmark Health experienced strong financial results driven by a 2.5% annual increase in Health Plan membership, higher patient volumes at Allegheny Health Network, and favorable equity market performance. These positive results allow Highmark Health to continue navigate challenges from inflationary and other economic pressures, while also investing in our patients, members, and communities," explained Janine Colinear, senior vice president of finance and interim chief financial officer and treasurer of Highmark Health.
The Highmark Health Plans reported an operating gain of more than $130 million for the first quarter of 2023 and an increase in annual membership enrollment.
Highmark's diversified businesses reported combined gains of about $40 million through March 31, 2023.
United Concordia Dental extended its positive performance, delivering an operating gain of $19 million for the first quarter of 2023. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $19 million for the same period.
enGen, Highmark Health's information technology services company, whose platform serves millions of lives across the country, reported strong financial results driven by higher platform enrollment and demand to support client projects. Technology-related revenue for the organization reached approximately $300 million.
AHN reported earnings before interest, taxes, depreciation, and amortization of $47 million for the first quarter of 2023, as increasing patient volumes offset inflationary pressures. The provider network reported operating revenue of nearly $1.2 billion for the period ending March 31, 2023.
For the first three months of 2023, AHN saw patient volumes rise compared to the same period in 2022, with a 10 percent increase in inpatient discharges and observations, a 7 percent increase in outpatient registrations, a 7 percent increase in physician visits, an 11 percent increase in emergency room visits, and a 4 percent increase in births across the network.
Lynn Seay
Highmark Health
412-544-2771
Email Lynn
Emily Gauthier
Highmark Health
412-953-7089
Email Emily
Highmark Health, a Pittsburgh, PA-based enterprise that employs more than 42,000 people who serve millions of Americans across the country, is the parent company of Highmark Inc., Allegheny Health Network, enGen, and Helion. Highmark Inc. and its subsidiaries and affiliates provide health insurance to 7 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 in western Pennsylvania comprised of 14 hospitals, more than 2,600 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. enGen is focused on meeting the information technology platform and other business needs of the Highmark Health enterprise as well as unaffiliated health insurance plans by providing proven business processes, expert knowledge, and integrated cloud-based platforms. Helion works with payers to cultivate high-performing networks while empowering providers to operate at their best. To learn more, visit www.highmarkhealth.org.
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