Press Release

Highmark Health Year-End 2023 Financials

PITTSBURGH (March 18, 2024) — Highmark Health today announced consolidated financial results for 2023, reporting $27.1 billion in revenue, an operating gain of $338 million, and a net income of $533 million.

These results are due to the strong operating performance of the organization's insurance business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by steady membership, more affordable product options, and better health outcomes, and positive investment markets performance. Additionally, Highmark Health's provider network, Allegheny Health Network (AHN), experienced increased patient volumes over the prior year in nearly all care delivery areas.

Highmark Health maintained a strong balance sheet with $11 billion in cash and investments and net assets of $10 billion as of December 31, 2023.

The organization's strong financial performance enabled Highmark Health to provide more than $225 million in community support, including charity care, uncompensated care, and corporate giving, and direct more than $825 million toward capital investments in its Living Health model and transformation strategy.

"Over the last decade, Highmark Health has transformed from a successful regional insurer into an innovative, diversified health care organization with comprehensive solutions and national influence. Our Living Health model in western Pennsylvania is proving that we can integrate health, coverage and care at a level few have attempted," said David Holmberg, president and chief executive officer of Highmark Health. "As our patient volumes, steady membership and strong financial results prove, people are choosing our products and services because we deliver what they value."

"Highmark Health's business performance has remained consistently strong despite market fluctuations and the inevitable ‘S’ curves that come with health care," explained Carl Daley, chief financial officer and treasurer of Highmark Health. "It is our unique diversified business model and financial discipline that enable us to focus on long-term investment in our organization’s growth, our transformation strategy, our communities, and our customers, members and patients."

The Highmark Health Plans reported an operating gain of approximately $400 million in 2023, driven by steady year-over-year membership, as enrollees sought the organization's more affordable options and experience improved health care outcomes.

AHN experienced earnings before interest, taxes, depreciation, and amortization of $117 million for 2023, as more patients across western Pennsylvania chose AHN facilities for care. The health network reported an operating revenue of $4.7 billion for the period ending December 31, 2023.

In 2023, AHN saw patient volumes rise year-over-year, with inpatient discharges and observations increasing 7 percent, outpatient registrations increasing 5 percent, physician visits increasing 3 percent, and emergency room visits increasing 6 percent.

United Concordia Dental continued its positive performance, delivering an operating gain of $105 million for 2023. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $55 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 in 2023 driven by higher platform enrollment.