UPMC’s operating margin has gotten progressively slimmer in recent years, even slipping into negative territory as the large integrated health system juggles volume and expense pressures in a competitive Pennsylvania market.
UPMC’s operating margin was essentially flat in the third quarter of 2019, which ended Sept. 30. That’s because the Pittsburgh-based academic medical center’s operating income dropped to a mere $76,000 on $5.1 billion in revenue in the recently ended quarter, compared with $14.4 million on $4.7 billion in revenue in the third quarter of 2018.
“This happens to be one area where UPMC stands out as weaker than its peer group,” said Ken Gacka, senior director and analytical manager for S&P Global Ratings.
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