PITTSBURGH (November 29, 2023) — Highmark Health today announced consolidated financial results for the first nine months of 2023, reporting $20.3 billion in revenue, an operating gain of $406 million and net income of $431 million.
These results are due to the positive performance of the organization's insurance businesses, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by strong membership as customers chose our plans due to their affordability and care accessibility. Highmark Health's provider network, Allegheny Health Network (AHN), saw increased patient volumes year-over-year, which boosted revenue.
Highmark Health continued to maintain a strong balance sheet with $11 billion in cash and investments and net assets of more than $9 billion as of September 30, 2023.
"As the healthcare industry continues to normalize, Highmark Health is seeing increasing patient volumes at AHN and related higher health insurance utilization," shared Carl Daley, chief financial officer and treasurer of Highmark Health. "Our continued focus on strengthening our organization's diversified operating model and maintaining financial stability delivers the flexibility needed to adapt and respond to the inevitable S-curves in the journey. We're prepared whether facing challenging economic conditions, market or policy shifts, or something as disruptive as a pandemic. It has also enabled us to continue to invest in our long-term growth strategy."
Highmark Health Plans reported an operating gain of $430 million for the first nine months of 2023. This strong financial performance was driven by annual membership growth while overcoming cost pressures from increased claims utilization. The insurance organization continued to provide quality affordable coverage to consumers and communities while remaining committed to ensuring members have access to the care they need, closer to home.
United Concordia Dental extended its positive performance while addressing similar headwinds as the Health Plan, delivering an operating gain of $74 million for January through September in 2023. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $52 million for the same period.
enGen, Highmark Health's information technology services company, whose platform serves millions of lives across the country, reported solid financial results driven by higher platform enrollment and demand to support client projects. Technology-related revenue for the organization reached approximately $850 million for the first nine months of 2023.
AHN experienced earnings before interest, taxes, depreciation, and amortization (EBITDA) of $64 million for the first nine months of 2023, as increasing patient volumes offset inflationary pressures. The provider network reported operating revenue of approximately $3.5 billion for the period ending September 30, 2023.
For the first nine months of 2023, AHN saw patient volumes rise overall compared to the same period in 2022, with a 7 percent increase in inpatient discharges and observations, a 5 percent increase in outpatient registrations, a 4 percent increase in physician visits, and a 6 percent increase in emergency room visits across the network.
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.