Highmark Health’s net income jumps 250% on capital market rebound

The nonprofit health system reported Wednesday that a capital markets boom boosted Highmark Health’s net income by more than 250% during the first quarter.

The Pittsburgh-based company posted $227 million in net income in the subsequent quarter $150 million loss A year ago, when its investment declined by $200 million. Highmark Health Revenue rose 4.6% to $6.7 billion on gains in health insurance enrollments and higher volumes at its Allegheny Health network providers.

Highmark’s health insurance operations, which cover approximately 7 million people in Delaware, New York, Pennsylvania and West Virginia, generated $130 million in operating income on $5.6 billion in revenue. Health insurance exchanges, Medicare Advantage and large group memberships collectively increased 2.5%, while small group enrollments declined slightly, Daryl Weitch, chief financial officer of Highmark Health Plans, said during a news conference Wednesday. Is.

“That market has struggled in a way that other markets haven’t,” Weitch said. “The local insurance companies and all the hospitals lost money, mostly because of the inadequate small group rates. But they are better for ’23 and we are hoping to get back to minimum profitability for us, and we think the hospital Will reach the same place.

Allegheny Health Network reduced its net loss 65.6% to $36.2 million, driven by higher patient volume, value-based reimbursement incentives and third-party payer settlement, Highmark reported. Revenue for the 14-hospital system rose 16.7% to $1.1 billion. The number of admitted patients increased 10%, outpatient registrations and physician visits increased 7%, emergency department visits increased 11%, and deliveries increased 4%. According to the company, provider operations supply expenses increased approximately 18% to $265.4 million due to higher utilization and inflation and increased labor costs.

Source link

Leave a Comment