Highmark Health revenue grows 5%, hits $27.1B in Q4
The organization attributes the results to its insurance business units, notably Highmark Health Plans and HM Insurance Group.
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In a 5% year-over-year increase, Highmark Health reported $27.1 billion in revenue, an operating gain of $338 million, and a net income of $533 million in 2023.
The organization attributed the results to its insurance business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, which it said are driven by steady membership, more affordable product options and better health outcomes, on top of positive investment market 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's balance sheet showed $11 billion in cash and investments, and net assets of $10 billion as of December 31, 2023.
WHAT'S THE IMPACT?
This financial performance, the company said, allowed it 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.
The Highmark Health Plans reported an operating gain of approximately $400 million in 2023, driven by steady year-over-year membership.
AHN experienced earnings before interest, taxes, depreciation and amortization of $117 million for 2023. The health network reported an operating revenue of $4.7 billion for the period ending December 31.
In 2023, AHN saw patient volumes rise year-over-year, with inpatient discharges and observations increasing 7%, outpatient registrations increasing 5%, physician visits increasing 3% and emergency room visits increasing 6%.
United Concordia Dental delivered an operating gain of $105 million. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $55 million for the same period, while enGen, Highmark Health's information technology services company, reported strong financial results in 2023 driven by higher platform enrollment.
THE LARGER TREND
Last 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 forecasts 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.
Highmark Health, based in Pittsburgh, Pennsylvania, is the parent company of Highmark Inc., Allegheny Health Network and HM Health Solutions. It is among the largest integrated healthcare delivery and financing systems in the nation.
ON THE RECORD
"Over the last decade, Highmark Health has transformed from a successful regional insurer into an innovative, diversified healthcare organization with comprehensive solutions and national influence," said Highmark Health president and CEO David Holmberg. "Our Living Health model in western Pennsylvania is proving that we can integrate health, coverage and care at a level few have attempted. 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 healthcare," said 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."
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
