Highmark Health Reveals Robust Financial Performance for H1 2023: $13.6 Billion Revenue, $230 Million Operating Gain, and $389 Million Net Income
Pittsburgh-based Highmark Health has unveiled its consolidated financial outcomes for the initial half of 2023, showcasing remarkable figures, including a revenue of $13.6 billion, an operating gain of $230 million, and a net income of $389 million. These impressive results can be attributed to the commendable performance across various business units, notably Highmark Health Plans, United Concordia Dental, and HM Insurance Group. This performance was propelled by a substantial membership base drawn to the affordability and accessibility of our plans.
Moreover, Allegheny Health Network (AHN), our provider network, witnessed a notable surge in patient volumes compared to the previous year, which in turn amplified the overall revenue. The enterprise’s financial success was further bolstered by the favorable performance of equity markets, adding an approximate $200 million to the net income.
In the face of supply chain challenges, inflation, and labor scarcities, Highmark Health remains committed to preserving a robust financial position. As of June 30, 2023, we maintain a solid balance sheet with over $11 billion in cash and investments, and net assets exceeding $9 billion.
David Holmberg, the President and CEO of Highmark Health, emphasized the organization’s financial resilience, underscoring its commitment to community well-being and economic stability. Janine Colinear, Senior VP of Finance and Interim CFO, highlighted our adaptability in the current dynamic landscape and the continued evolution of our diversified business model.
Highmark Health Plans exhibited a compelling operating gain of $237 million for H1 2023, reflecting strong membership and a steadfast dedication to offering accessible, high-quality coverage. United Concordia Dental and HM Insurance Group also showcased praiseworthy performances, reporting operating gains of $40 million and $39 million respectively.
Additionally, enGen, our IT services arm, marked notable financial achievements driven by increased platform enrollment and demand. Technology-related revenue reached approximately $575 million for the first half of 2023.
Allegheny Health Network (AHN) posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $68 million for H1 2023, successfully offsetting inflationary challenges with increased patient volumes. Operating revenue for the network was around $2.3 billion, underlining its resilience and effectiveness.
AHN reported a remarkable uptick in patient volumes across various metrics, including an 8 percent increase in inpatient discharges and observations, 6 percent in outpatient registrations, 6 percent in physician visits, and an 8 percent increase in emergency room visits.
About Highmark Health:
With a workforce exceeding 42,000 individuals serving millions of Americans, Highmark Health, headquartered in Pittsburgh, PA, is the parent company of Highmark Inc., Allegheny Health Network, enGen, and Helion. Highmark Inc. and its subsidiaries provide health insurance to 7 million members across several states, along with dental insurance and related health products. Allegheny Health Network is a comprehensive healthcare network in western Pennsylvania, encompassing hospitals, affiliated physicians, and diverse healthcare services. enGen focuses on fulfilling IT and business needs for both Highmark Health and unaffiliated health insurance plans. Helion collaborates with payers and providers to create high-performance healthcare networks while empowering providers’ optimal operations.