For University of Pittsburgh students and area residents, medical care is spelled UPMC. The organization is a leading not-for-profit health care delivery system in western Pennsylvania. UPMC operates about 20 hospitals, including campuses in the Pittsburgh area, regional and community hospitals, and specialty facilities such as Children's Hospital of Pittsburgh and the Magee-Womens Hospital. Combined, UPMC has about 4,500 inpatient beds. In addition, the system provides care through hundreds of physician practices, outpatient clinics, cancer treatment facilities, and rehab centers; it also offers health insurance, home health care, and long-term care through about 15 senior living facilities.
As an academic medical center affiliated with the University of Pittsburgh's Schools of Health Sciences, UPMC also focuses on medical research in a wide range of areas, including the fields of regenerative medicine and biosecurity, some of which is funded by the National Institutes of Health. UPMC is also renowned for its organ transplantation programs, as well as for its cancer care, psychiatric, pediatric and women's health services. In addition, UPMC is a forerunner in the health care information technology field.
Through UPMC Health Plan, the organization offers commercial group health insurance, as well as managed care plans for government programs such as Medicare and Medicaid, to some 1.6 million members in Pennsylvania. The unit also provides behavioral health plans and leave management programs.
The company's primary operating territory for its health and insurance segments is western Pennsylvania. Outside the US, UPMC operates health care facilities in Ireland, Italy, Quatar Cyprus, and the UK. It also provides management and consulting services in other international countries to improve global health care, partly through partnerships with health equipment and technology firms.
Marketing and Sales
The majority of UPMC's hospital services are rendered to patients under Medicare, Highmark Blue Cross Blue Shield (a major area insurer), and medical assistance programs. The company's patient service revenue comes from Medicare accounts for about 30% of all patient revenue each year, 25% from Highmark, about 10% from other medical assistance programs, and the remainder from self-pay and commercial insurance.
UPMC's revenues increased 12% to some $9 billion in 2011, and net income rose by 79% to $680 million. The health system's growth was attributed to increased patient service revenues, which account for about 55% of sales, and higher enrollment levels in the UPMC Health Plan, which accounts for 35% of sales. This marks the seventh year of increased revenues for the company.
The UPMC network of facilities has grown over the years through acquisitions and new facility construction. For instance, in 2012 the health system completed construction of a new 300-bed hospital, dubbed UPMC East, in eastern Pittsburgh. It also partnered with nearby Washington Hospital to construct urgent care centers in 2011. Previous expansion efforts include the 2008 acquisition of UPMC Mercy and the 2009 construction of a new campus for the Children's Hospital of Pittsburgh. On the flip side, UPMC has occasionally sold or shut down less-profitable facilities in its network, such as UPMC Braddock, an underused suburban community hospital shut down in 2010.
UPMC is advancing its technology systems to control costs and increase efficiencies. The health system has established electronic health record (EHR) systems at all of its hospitals and is working to share data with other area providers. In 2012 it also converted its procurement and supply systems to an electronic data exchange system from software firm Toreion. In addition, UPMC has partnerships with Alcatel-Lucent, GE, and IBM to help reduce medical expenses and increase the quality of care through IT initiatives. – less