Highmark Health Announces H1 2022 Revenue of $12.9 Billion and Operating Gains of $387 Million
- Highmark Health revenue increases 24% year over year
- Strong Performance of Highmark Health Plans Drives Positive Operating Results
- Stock market impact depresses bottom line
PITTSBURGH, August 30, 2022 /PRNewswire/ — Highmark Health today announced consolidated financial results for the first six months of 2022, reporting $12.9 billion in turnover, an operating gain of $387 millionand a net loss of $174 millionincluding $460 million decline in unrealized equity market return.
These results were driven by the positive performance of insurance business units including Highmark Health Plans, United Concordia Dental and HM Insurance Group, boosted by favorable claims and underwriting. Highmark Health’s provider network, Allegheny Health Network (AHN), saw a slight year-over-year increase in patient numbers, but faced continued cost pressures due to supply chain, inflation and rising labor costs.
Highmark Health has maintained a strong balance sheet with $11 billion in cash and investments and net assets of $9.7 billion of the June 30th2022.
“Highmark Health’s strong and consolidated financial results confirm that our blended health approach and diversified business operating model are strong – both in our core markets and nationally. Despite challenges affecting the entire healthcare industry, we remain strategically and operationally focused on serving our customers, driving the focused execution of our Living Health strategy and maintaining our holistic investment plan and strategy. . We are built to weather these storms,” said David Holberg, President and CEO of Highmark Health. “Whether through investments in patient access to AHN, strategic collaborations with healthcare and technology innovators, or enhancements to better meet the needs of our customers, Highmark Health is looking to the future. future and builds the future of healthcare.
“Highmark Health’s diversified business model is key to our financial strength and stability. As we expected, Highmark Health delivered strong financial performance despite a challenging economic environment. The positive operating performance of our health insurance business was driving these results,” explained Saurab Tripathi, Executive Vice President, Chief Financial Officer and Treasurer of Highmark Health. “We continue to address the cost pressures AHN faces through proactive operational and corporate strategies.”
Highmark Health Plans reported an operating gain of more than $450 million for the first six months of 2022, mainly due to a strong performance of commercial and government activities and favorable claims development.
Highmark’s diversified businesses reported combined earnings of more than $100 million through June 30, 2022.
United Concordia Dental extended its positive performance, generating an operating gain of $68 million for the first six months of 2022. Highmark Health’s stop loss business, HM Insurance Group (HMIG), recorded an operating gain of $35 million for the same period.
enGen, formerly known as HM Health Solutions (HMHS), the information technology services company of Highmark Health, whose platform serves approximately 11 million lives nationwide, reported strong results in the first half of 2022, driven by an increase in platform enrollment and demand to support project clients.
AHN incurred losses before interest, taxes, depreciation and amortization of $71 million for the first six months of 2022 as rising labor and supply chain costs continued to offset stable patient volumes. Excluding the unrealized impact on investments, AHN’s EBITDA was $18 million. She declared an operating income of $2 billion for the period ending June 30, 2022.
For the first half of 2022, patient volumes increased overall compared to the same period in 2021, with a 2% decrease in discharges and observations, a 12% increase in outpatient registrations outside vaccination appointments, a 3% increase in doctor visits and a 13% increase in emergency room visits. Births were also up 6% network-wide from the first six months of 2021.
About Highmark Health
Highmark Health, a Pittsburgh, Pennsylvania, which employs more than 37,000 people serving millions of Americans across the country, is the parent company of Highmark Inc., Allegheny Health Network and enGen. Highmark Inc. and its subsidiaries and affiliates provide health insurance to approximately 6.8 million members in Pennsylvania, West Virginia, Delaware and New York as well as dental insurance and related health products through a nationwide network of diverse companies. Allegheny Health Network is an integrated delivery network comprised of 14 hospitals, over 2,500 affiliated physicians, outpatient surgery centers, a salaried physician organization, home and community health services, a research, a group purchasing organization and health and well-being pavilions. in the West Pennsylvania. enGen’s dynamic ecosystem of intelligent automation and technology supports and streamlines the complex operations of health plans and their vendor partners. Founded in 2014 as HM Health Solutions (HMHS), enGen is a wholly owned subsidiary of Highmark Health. enGen has more than 3,500 employees and works with health benefit plans serving 11 million members nationwide. To learn more, visit Engen.health. Lumevity, a wholly owned subsidiary of Highmark Health, helps companies transform in ways that generate direct financial benefits while improving quality and increasing employee engagement. To learn more, visit www.highmarkhealth.org.
SOURCE Highmark Health