University of Pittsburgh Medical Center reports rare loss

The University of Pittsburgh Medical Center has announced it lost money during first nine months of fiscal 2008. Net income was a negative $7 million, compared with a gain of $459 million in the same period a year ago. The drop was largely due to turmoil in financial markets and the resulting pressure on UPMC's $3 billion equity and fixed-income investment portfolio. Despite the overall decline, UPMC Chief Financial Officer Robert DeMichiei argued that it was a "very solid performance" for UPMC. DeMichiei pointed to its sizable cash flow, 6 percent growth in admissions at its 20 hospitals, a 12 percent increase in enrollment to its insurance arm, and a 12 percent increase in operating revenue.