Highmark Health reaches $26 billion in revenue

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Highmark Health has announced consolidated financial results for the 2022 fiscal year, reporting $26 billion in revenue, an operating gain of $440 million and a net loss of $346 million.

Without factoring in the impact of unrealized investments, Highmark reported net earnings of roughly $47 million for the year, an 18% year-over-year leap.

The organization attributed this strong financial performance to the positive performance of the insurance business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group. This was driven, the company said, by increased membership, more affordable options and better health outcomes.

Highmark Health's provider network, Allegheny Health Network (AHN), experienced overall increased patient volumes year-over-year, but faced continued cost pressures due to supply chain challenges, inflation, higher labor costs and labor shortages, the organization said.

The company touted a strong balance sheet with $11 billion in cash and investments, and net assets of $9 billion as of December 31.

WHAT'S THE IMPACT?

Due in part to its strong financial showing, Highmark said it provided more than $300 million in community support, including charity care, uncompensated care, and corporate giving, and directed more than $900 million toward capital investments to support building the organization's blended health model.

Meanwhile, the Highmark Health Plans reported an operating gain of more than $500 million for full year 2022, as well as an increase in membership enrollment of 2.5% year-over-year. The company's diversified businesses reported combined earnings of more than $200 million through December 31.

United Concordia Dental extended its positive performance, delivering an operating gain of $137 million for the 2022 fiscal year. Highmark's stop loss business, HM Insurance Group, reported an operating gain of $65 million for the same period.

AHN experienced earnings before interest, taxes, depreciation and amortization of $19 million for 2022 as rising labor and supply chain costs continued to offset stable or increasing patient volumes. Excluding unrealized investment impact, AHN's EBITDA was $107 million. It reported an operating revenue of $4.4 billion for the period ending December 31.

In 2022, AHN saw patient volumes rise overall compared to 2021, with an 8% increase in outpatient registrations excluding vaccination appointments, a 3% increase in physician visits and a 7% increase in emergency room visits. Inpatient discharges and observations remained relatively flat, but births increased 5% across the network compared to 2021.

THE LARGER TREND

Earlier this month, 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