Highmark Health Revenue Hits $18B in 2020

Like many providers, Highmark's patient volumes fell last year due to the coronavirus outbreak, with inpatient discharges decreasing 9%, outpatient registrations slipping 2%, and physician visits falling 7%.

Highmark Health reported consolidated revenue of $18 billion in 2020, the Pittsburgh-based healthcare organization announced Monday afternoon.

Highmark also reported an operating gain of $490 million and an excess revenue over expenses of $450 million, excluding a one-time gain.

Highmark Health Plan reported an operating gain of $400 million last year, driven largely by strong performance in its commercial and government business segments. The health plan finished the year with approximately 5.6 million members.

Despite the strong financials amid the COVID-19 pandemic, Allegheny Health Network reported an operating loss of $136 million, after three years of growth. Highmark attributed this to "volume declines associated with the COVID-19 pandemic and pandemic-related expenses."

Like many providers, Highmark's patient volumes fell last year due to the coronavirus outbreak, with inpatient discharges decreasing 9%, outpatient registrations slipping 2%, and physician visits falling 7%.

"While COVID-19 has been everybody's number one priority, and will remain so, strong organizations must also constantly look forward and build for the future," David Holmberg, CEO of Highmark Health, said in a statement. "Our transformation strategy — Living Health — combines two fundamental concepts: payers and providers — along with other strategic partners and collaborators — united to better serve our customers and clinicians. We recognize that we need to re-engage people in their health, eliminate the barriers and cost that get in the way, and leverage technology as a key enabler. Living Health represents our shared purpose and commitment to actively making things better instead of being resigned to how things are."

Highmark released its year-end financials less than a week after the organization reported that it generated more than $220 million in savings last year related to fraud, waste, and abuse.

Related: Highmark Reports More Than $220M in Savings Related to Fraud, Waste, and Abuse

In response to a question from HealthLeaders, Holmberg said that he believes telehealth is here to stay and will be part of Highmark's growth strategy going forward.

"[Telehealth] is going to take some work, we've got to make sure that we ingrain it in the culture and, ultimately, this is a powerful tool to be able to take costs out of the healthcare system," Holmberg said. "As we do more virtually, you need less bricks-and-mortar, like you're seeing in retail and other businesses. We're optimistic about that."

The company also finished the year with $11 billion in cash and investments, with net assets of $9 billion.

The organization reported combined earnings of $370 million in its diversified business line, marking an improvement of more than $180 million year-over-year.

United Concordia Dental and Highmark's blue branded dental business produced an operating gain of $254 million while its stop loss business HM Insurance Group delivered a $101 million operating gain.