Highmark Health reports $7.3 billion revenue and $194 million net income

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May 30, 2024, 10:30 ET

Highmark Health Plan successfully enters southeastern Pennsylvania market
Allegheny Health Network sees increased patient volumes, bolstering revenue and improving operational performance

PITTSBURGH, May 30, 2024 /PRNewswire/ -- Highmark Health today announced consolidated financial results for the first three months of 2024, reporting $7.3 billion in revenue, operating gains of $84 million, and net income of $194 million.

Highmark Health continued to address cost pressures related to rising drug and labor costs while maintaining a strong balance sheet with $11 billion in cash and investments and net assets of nearly $10 billion as of March 31, 2024.

"Highmark Health experienced steady financial results in the first quarter of 2024, driven by sustained membership and market expansion, increased patient volumes, and gains from investment activity. Our organization continues to navigate the same cost pressures others in our industry face, including rising drug costs, and we're seeing more people seeking care, which increased AHN patient volumes and health plan utilization," explained Carl Daley, executive vice president, chief financial officer and treasurer of Highmark Health. "Despite these challenges, we maintain positive and stable financial results, which enable us to continue our transformation efforts and invest strategically in growth, new markets, and our mission to reinvent health."

The Highmark Health Plans reported an operating gain of more than $80 million and operating revenue of over $5 billion for the first quarter of 2024. While first quarter operating performance continued to be strong, the health plan continues to navigate industry-wide headwinds related to increased utilization of medical services, primarily within the Medicare Advantage business, and rising pharmaceutical costs, particularly around GLP-1 drugs. The health plan successfully entered the southeastern Pennsylvania market, and as previously shared, overall membership remains steady for 2024.

Improvements in AHN operations drove earnings before interest, taxes, depreciation, and amortization (EBITDA) of $36 million for the first quarter of 2024. AHN reported operating revenue of $1.3 billion for the period ending March 31, 2024. The provider network saw patient volumes rise compared to the same period in 2023, with inpatient discharges and observations up 4 percent, outpatient registrations up 5 percent, physician visits up 3 percent, and emergency room visits up 7 percent across the network. These revenues and patient volume improvements were offset by investments in AHN's clinical care teams, infrastructure upgrades and pressures from supply and drug costs.

Highmark's diversified businesses reported combined operating gains of $33 million through March 31, 2024. United Concordia Dental extended its positive performance, delivering an operating gain of $21 million for the first quarter of 2024. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $12 million for the same period.

enGen, Highmark Health's information technology services company, whose platform serves millions of lives across the country, reported strong financial results driven by steady platform enrollment. Operating revenue for the organization reached nearly $300 million.

About Highmark Health
Highmark Health, a Pittsburgh, PA-based enterprise that employs more than 44,000 people who serve millions of Americans across the country, is the parent company of Highmark Inc., Allegheny Health Network, enGen, and Helion. Highmark Inc. and its subsidiaries and affiliates provide health insurance to 6.9 million members in Pennsylvania, West Virginia, Delaware, and New York, as well as dental insurance, and related health products through a national network of diversified businesses. Allegheny Health Network is an integrated delivery network in western Pennsylvania comprised of 14 hospitals, more than 2,600 affiliated physicians, ambulatory surgery centers, an employed physician organization, home and community-based health services, a research institute, a group purchasing organization, and health and wellness pavilions. enGen is focused on meeting the information technology platform and other business needs of the Highmark Health enterprise as well as unaffiliated health insurance plans by providing proven business processes, expert knowledge, and integrated cloud-based platforms. Helion works with payers to cultivate high-performing networks while empowering providers to operate at their best. To learn more, visit www.highmarkhealth.org.

SOURCE Highmark Health