Highmark Health announces earnings
PITTSBURGH — Highmark Health has announced record revenues and continued strong performance during 2018 for the second consecutive year, reporting an excess of revenue over expenses of $570 million and an operating gain of $526 million, driven by continued strong financial performance across all of its companies.
Total revenues were $18.8 billion, $500 million more than the prior year, while pre-tax results were $665 million. Net assets were $6.7 billion, $200 million over the prior year.
“We’ve made much progress in building a strong enterprise since we formed Highmark Health six years ago, as reflected in our strong 2018 financial performance improvements across all of our business units – the second highest results in company history, surpassed only by the record results we reported in 2017,” David Holmberg, president and chief executive officer, said.
The financial momentum reinforces the value of the company’s diversified portfolio of businesses, said Karen Hanlon, chief operating officer and chief financial officer of Highmark Health.
“In addition to our strong earnings, we continued to make significant investments totaling more than $470 million in our integrated delivery and finance system in order to provide the value, capabilities and services necessary to create a remarkable health experience for the millions of customers we serve across the nation,” she said.
Highmark Health also improved results year over year through a nearly $90 million reduction in corporate and other expenses, driven by continued expense control and gains from the first full year of earnings through our investment in Penn State Health.
Highmark Health paid taxes in 2018 totaling $432 million.