Highmark Health logs $13.6B in revenue in the first half
The nonprofit Blues insurer attributed this result to strong membership numbers in its individual business units, such as Highmark Health Plans.
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Citing strong performance from its business units, Highmark Health said it logged $13.6 billion in revenue during the first half of 2023, as well as an operating gain of $230 million and net income of $389 million.
The nonprofit Blues insurer attributed this result to Highmark Health Plans, United Concordia Dental and HM Insurance Group, which all saw strong membership numbers.
Highmark's provider network, Allegheny Health Network (AHN), saw increased patient volumes year-over-year, which boosted revenue, the insurer said. Additionally, the enterprise benefited from the positive equity market performance, as the unrealized investment impact added about $200 million to Highmark's total net income.
The organization said it 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 June 30.
WHAT'S THE IMPACT
Highmark Health Plans reported an operating gain of $237 million for the first six months of 2023, driven by high annual membership.
United Concordia Dental extended its positive performance while addressing similar headwinds as the Health Plan, delivering an operating gain of $40 million for the first half. Highmark's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $39 million for the same period.
enGen, Highmark Health's information technology services company, reported strong financial results driven by higher platform enrollment and demand to support client projects. Technology-related revenue for the organization reached about $575 million in the first half.
Meanwhile, AHN experienced earnings before interest, taxes, depreciation and amortization (EBITDA) of $68 million for the first half, as increasing patient volumes offset inflationary pressures. The provider network reported operating revenue of about $2.3 billion for the period ending June 30.
For the first half of 2023, AHN saw patient volumes rise overall compared to the same period in 2022, with an 8% increase in inpatient discharges and observations, a 6% increase in outpatient registrations, a 6% increase in physician visits and an 8% increase in emergency room visits across the network.
THE LARGER TREND
This spring, in the wake of a "severe illness season," Highmark Health said it was teaming with Kinsa to deploy its real-time illness insights and season forecast to predict healthcare utilization, recognize staffing needs, and plan emergency department and ICU bed capacity when infectious diseases like COVID-19 and influenza spike.
Kinsa is an insights solutions business using data and advanced analytics to track and forecast the spread of illness and predict corresponding demand for healthcare products and services.
Highmark entered into another partnership in 2022 when it joined Allegheny Health Network in collaborating with Cedar to improve the patient's financial journey in a program that went live in October.
The model brings together the explanation of benefits with the hospital bill for a single source of truth. In addition, the program includes health savings account balances to help remove fragmentation in billing. This is the first time Cedar is integrating HSA balances.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
