- Strong operating performance across insurance business units drives positive consolidated results
- Allegheny Health Network reports 8% operating revenue growth and 5% EBITDA increase year-over-year
PITTSBURGH, Aug. 29, 2024 -- Highmark Health today announced consolidated financial results for the first six months of 2024, reporting $14.7 billion in revenue, an operating gain of $307 million, and net income of $417 million.
These results are due to the strong operating performance of the organization's insurance business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by steady membership and affordable product options. Additionally, Highmark Health's provider network, Allegheny Health Network (AHN), experienced increased patient volumes over the first six months of 2024 in nearly all care delivery areas.
Highmark Health maintained a strong balance sheet with $11 billion in cash and investments and net assets of $10 billion as of June 30, 2024.
"As a purpose-driven nonprofit with a customer-first culture, Highmark Health's sustained strong financial performance enables us to invest, grow and innovate in ways that create value for our customers and communities," said David Holmberg, president and chief executive officer of Highmark Health. "Our Living Health model is the heart of that work. We are transforming the ecosystem around a person's health, coverage and care so it is simpler, better connected, more proactive and personalized. That's 'value' from the perspective of our health plan members and patients."
"Highmark Health continues to be financially strong and stable, positioning our organization to adapt and succeed as the healthcare landscape continues to evolve," explained Carl Daley, chief financial officer and treasurer of Highmark Health. "Our diversified portfolio of businesses, markets, and products allow us to adjust and readjust as we face various headwinds over time and empower us to execute on our mission to deliver a remarkable health experience, freeing people to be their best."
Highmark Health Plans
The Highmark Health Plans reported operating revenue of $11.1 billion and an operating gain of $304 million for the first six months of 2024, driven by steady membership in both government and commercial businesses. The health insurance organization reported better-than-expected commercial membership enrollment in the southeastern Pennsylvania region following its entry in the market.
Allegheny Health Network (AHN)
AHN reported earnings before interest, taxes, depreciation, and amortization of $71 million for the first six months of 2024, as more patients across western Pennsylvania chose AHN facilities for care. The health network reported an operating revenue of $2.5 billion for the period ending June 30, 2024.
During the first six months of 2024, AHN saw patient volumes rise year-over-year, with inpatient discharges and observations increased 3 percent, outpatient registrations increased 6 percent, physician visits increased 4 percent, and emergency room visits increased 7 percent.
Diversified Businesses
United Concordia Dental continued its positive performance, delivering an operating revenue of $867 million and an operating gain of $45 million for the first six months of 2024.
Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating revenue of $594 million and an operating gain of $33 million for the first six months of 2024.
enGen, Highmark Health's information technology services company, whose platform serves millions of lives across the country, reported operating revenue of $558 million and strong financial results for the first six months of 2024 driven by steady platform enrollment.
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.
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