Highmark Health reports $20.3B in revenue through three quarters
The organization attributes these results to the positive performance of its insurance businesses.
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Highmark Health has reported $20.3 billion in revenue, an operating gain of $406 million and net income of $431 million through the first nine months of this year, noting that revenue has grown about 4% over last year.
The organization attributed these results to the positive performance of the organization's insurance businesses, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group. Highmark Health's provider network, Allegheny Health Network (AHN), saw increased patient volumes year-over-year, which boosted revenue.
Highmark 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.
WHAT'S THE IMPACT?
Highmark Health in western Pennsylvania, is an integrated delivery network led by Allegheny Health Network that includes eight hospitals,
Highmark Health Plans reported an operating gain of $430 million for the first nine months of 2023. This performance, the company said, was driven by annual membership growth and overcoming cost pressures from increased claims utilization.
United Concordia Dental extended its positive performance, while addressing similar headwinds as the Health Plan. It delivered an operating gain of $74 million for January through September. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $52 million for the same period.
enGen, Highmark's information technology services company, 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 the year.
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 through September.
Also, through the first three quarters, AHN saw patient volumes rise overall compared to the same period in 2022, with a 7% increase in inpatient discharges and observations, a 5% increase in outpatient registrations, a 4% increase in physician visits, and a 6% 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
