As with many health care systems, inflation, supply chain woes and staffing challenges took a bite out of Highmark Health’s finances during 2022.
Highmark reported a net loss of $346 million on $26 billion in revenue. Excluding investment losses, the organization reported net earnings of about $47 million. Meanwhile, the Pittsburgh-based health system realized an operating gain of $440 million.
Allegheny Health Network, Highmark’s provider network, said it experienced overall increased patient volumes year-over-year but faced continued cost pressures because of supply chain challenges, inflation, and higher labor costs and shortages. In terms of patient volumes, outpatient registrations rose about 8%, physician visits about 3% and emergency room visits about 7%.
AHN, which includes 14 hospitals, reported revenue of $4.4 billion for the year.
“Highmark Health experienced headwinds from staffing challenges, equity portfolio performance and supply chain issues throughout 2022, and we expect some of those challenges will continue into 2023,” said Janine Colinear, Highmark Health’s senior vice president of finance and interim chief financial officer and treasurer. “However, the diversity of our business model, our continued growth through partnerships and affiliations, and strong performance will allow us to deliver on our mission to create a remarkable health experience, freeing people to be their best.”
Highmark Health, which employs more than 42,000 people, is the parent company of Highmark Inc., Allegheny Health Network, enGen and Helion. Highmark Inc. and its subsidiaries provide health insurance to 7 million people in Pennsylvania, West Virginia, Delaware and New York, as well as dental insurance and other health products.
The Highmark Health Plans saw membership enrollment climb 2.5% year-over-year.
“Despite facing multiple challenges, Highmark Health is in a strong, stable position,” said David Holmberg, president and chief executive officer of Highmark Health. “This strength and stability allows us to deliver on our Living Health promise to build a health, coverage and care ecosystem that works better for everyone.
“What we said, and proved, during the pandemic, is just as true in this economic environment: Highmark Health is built for this,” Holmberg continued. “In good times or bad, we have the strength and flexibility to adapt to challenges and continue providing exceptional service to our customers, members, patients and communities.”
Stephanie Ritenbaugh is a Tribune-Review staff writer. You can contact Stephanie at sritenbaugh@triblive.com.