Highmark Health reports 25% year-over-year revenue increase for mid-year revenue

Still, labor issues, supply chain challenges and growing expenses have hurt Highmark’s healthcare provider’s finances.

Highmark Health– a company that provides health services (through affiliates) and health insurance to 6.8 million people in Pennsylvania, West Virginia, Delaware and New York – announced its 2022 half-year financial results , reporting a 24% year-over-year increase in revenue and $387 million in operating gains for the first six months of this year.

Highmark Health attributes its strong performance to its insurance business units. Overall, Highmark Health reported revenue of $12.9 billion and a net loss of $174 million, which includes a $460 million decline in unrealized stock market performance. Highmark Health’s balance sheet remained strong with $11 billion in cash and investments and net assets of $9.7 billion as of June 30, 2022.

“Despite the challenging economic environment, we maintain strong fiscal discipline and as a result our long-term debt-to-equity ratio has remained low at around 80%,” Saurabh Tripathi, Chief Financial Officer for Highmark Health said on the company’s mid-year financial performance conference call. “Rating agencies have taken note of our stable financial performance and our ability to overcome challenges and [produce] a very strong balance sheet.”

However, the organization’s health provider network, Allegheny Health Network, struggled in the first half of the year as cost pressures such as labor and chain issues procurement continue to weigh on the healthcare space. Allegheny Health Network recorded losses before interest, taxes, depreciation and amortization of $71 million for the first six months of 2022. An increase in patient numbers was not enough to offset these costly pain points. Allegheny Health Network reported revenue of $2 billion for the period ending June 30, 2022.

“We have comprehensive, organization-wide strategies in place to deal with these pressures,” Tripathi said on the call. “And as we shared earlier this year, we expect AHN’s challenges to continue at least through the end of the year.”

Overall, Highmark Health executives are pleased with the organization’s financial performance for the first half of the year and have a positive outlook for the future.

“Highmark Health’s strong and consolidated financial results confirm that our blended health approach and diversified operating model are strong, both in our core markets and nationally,” said Highmark Health. CEODavid Holmberg said in a press release shared with HealthLeaders. “Despite the challenges affecting the entire healthcare industry, we remain strategically and operationally focused on serving our customers, driving the targeted execution of our living health strategy and maintaining our holistic investment plan and strategy. We are made to weather these storms.”

Amanda Schiavo is Finance Editor for HealthLeaders.

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