Highmark Health reports $12.9 billion in revenue and $387 million operating gains for first half of 2022

• Highmark Health revenue grows by 24% year-over-year
• Robust efficiency for Highmark Health Plans drives optimistic operating outcomes
• Equity market affect depresses web earnings outcomes

PITTSBURGH, Aug. 30, 2022 /PRNewswire/ — Highmark Health right this moment introduced consolidated monetary outcomes for the first six months of 2022, reporting $12.9 billion in revenue, an operating acquire of $387 million, and a web loss of $174 million, which incorporates $460 million decline in unrealized fairness market efficiency.

These outcomes are because of the optimistic efficiency of the insurance coverage enterprise items, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, pushed by favorable claims and membership. Highmark Health’s supplier community, Allegheny Health Network (AHN), skilled a slight enhance in affected person volumes year-over-year however confronted continued value pressures on account of provide chain challenges, inflation, and greater labor prices.

Highmark Health maintained a powerful steadiness sheet with $11 billion in money and investments and web property of $9.7 billion as of June 30, 2022. 

“Highmark Health’s sturdy, consolidated monetary outcomes reinforce that our blended well being strategy and diversified enterprise operating mannequin are strong – each in our core markets and on a nationwide scale. Despite challenges affecting your complete well being care sector, we stay strategically and operationally centered on serving our prospects, driving the purposeful execution of our Living Health technique, and sustaining our holistic capital plan and technique. We are constructed to climate these storms,” stated David Holmberg, president and chief govt officer of Highmark Health. “Whether it is by means of investments in affected person entry at AHN, strategic collaborations with well being care and expertise innovators, or enhancements geared toward higher assembly the wants of our prospects, Highmark Health is wanting ahead and constructing the long run of well being care.”

“Highmark Health’s diversified enterprise mannequin is vital to our monetary power and stability. As we anticipated, Highmark Health delivered sturdy monetary efficiency regardless of a difficult financial surroundings. Positive operational efficiency for our medical health insurance companies drove these outcomes,” defined Saurabh Tripathi, govt vp, chief monetary officer and treasurer of Highmark Health. “We proceed to handle the associated fee pressures AHN faces by means of proactive operational and enterprise methods.”

The Highmark Health Plans reported an operating acquire of greater than $450 million for the first six months of 2022, primarily pushed by strong efficiency in the business and authorities enterprise and favorable claims improvement.

Highmark’s diversified companies reported mixed earnings of greater than $100 million by means of June 30, 2022.

United Concordia Dental prolonged its optimistic efficiency, delivering an operating acquire of $68 million for the first six months of 2022. Highmark Health’s cease loss enterprise, HM Insurance Group (HMIG), reported an operating acquire of $35 million for the identical interval.

enGen, previously generally known as HM Health Solutions (HMHS), Highmark Health’s data expertise companies firm, whose platform serves roughly 11 million lives throughout the nation, reported sturdy monetary outcomes in the first half of 2022 pushed by greater platform enrollment and demand to assist consumer tasks.

AHN skilled losses earlier than curiosity, taxes, depreciation, and amortization of $71 million for the first six months of 2022, as rising labor and provide chain prices continued to offset steady affected person volumes. Excluding unrealized funding affect, AHN’s EBITDA was $18 million. It reported an operating revenue of $2 billion for the interval ending June 30, 2022.

For the first half of 2022, affected person volumes rose general in comparison with the identical interval in 2021, with a 2 % lower in discharges and observations, a 12 % enhance in outpatient registrations excluding vaccination appointments, a 3 % enhance in doctor visits, and a 13 % enhance in emergency room visits. Births additionally elevated 6 % throughout the community in comparison with the first six months of 2021.

About Highmark Health

Highmark Health, a Pittsburgh, PA-based enterprise that employs greater than 37,000 individuals who serve tens of millions of Americans throughout the nation, is the father or mother firm of Highmark Inc., Allegheny Health Network, and enGen. Highmark Inc. and its subsidiaries and associates present medical health insurance to roughly 6.8 million members in Pennsylvania, West Virginia, Delaware and New York in addition to dental insurance coverage, and associated well being merchandise by means of a nationwide community of diversified companies. Allegheny Health Network is an built-in supply community comprised of 14 hospitals, greater than 2,500 affiliated physicians, ambulatory surgical procedure facilities, an employed doctor group, residence and community-based well being companies, a analysis institute, a bunch buying group, and well being and wellness pavilions in western Pennsylvania. enGen’s dynamic ecosystem of good automation, and expertise helps and streamlines advanced operations for well being plans and their supplier companions. Founded in 2014 as HM Health Solutions (HMHS), enGen is a completely owned subsidiary of Highmark Health. enGen has greater than 3,500 staff and works with well being care plans serving 11 million members nationwide. To study extra, go to Engen.well being. Lumevity, a completely owned subsidiary of Highmark Health, helps firms remodel in ways in which drive direct monetary advantages whereas bettering high quality and rising worker engagement. To study extra, go to www.highmarkhealth.org.

SOURCE Highmark Health