UPMC showed a profit of more than $380 million during its last fiscal year, turning around its financial fortunes after two years of historically large losses.
That’s according to UPMC’s latest tax filing for the fiscal year spanning July 2024 to June 2025.
The return to profitability brings to an end one of the most financially tumultuous periods in UPMC’s history. UPMC recorded a profit of $170 million or more every year between 2005 and 2019, when it recorded a loss of just under $10 million, according to its tax filings.
But between summer 2022 and summer 2024, the healthcare system reported losses of more than $400 million. Those deficits followed an unusually large $1 billion profit in the first year of the pandemic in large part due to pandemic relief funding.
UPMC told Public Source it published its tax records when they were due on May 15 but didn’t respond to a request for an interview or respond to specific questions about the filing.
In its year-end financial report for 2025, UPMC attributed the upswing to a revenue increase of more than $500 million in its insurance division from Medicaid and other managed care and mental health insurance programs. The healthcare giant also cited increased operating efficiencies. UPMC eliminated 1,300 positions in 2024. (Earlier this month, UPMC announced that it was laying off 200 employees and closing another 300 positions.)
UPMC increased its profits despite a 5% membership drop in its insurance division over the past two years. The number of hospital beds across the system fell by around 500 last year as well, in large part because of nursing homes dropped from its portfolio.
UPMC warned in its year-end financial report that federal cuts to healthcare spending from President Trump’s One Big Beautiful Bill could bring new challenges. The law calls for decreases in subsidies for individuals enrolled in Affordable Care Act healthcare plans and reductions in spending on Medicaid. These changes, the report notes, will “reduce funding for health care services and lower the population that has coverage for paying for health care services.”
The White House didn’t respond to a request for comment.
The company’s total revenues surged past $30 billion last year, a roughly 25% increase, and the total number of employees increased by more than 20% as well, though most of these changes reflect a change in accounting.
UPMC Pinnacle, a Harrisburg-based hospital system that was rebranded UPMC Central Pa. Region in 2021, used to file tax forms separately but was included in the organization’s main filing for the first time. UPMC absorbed Pinnacle’s more than 1,200 hospital beds in 2017. In its last tax filing in 2024, UPMC Pinnacle reported having more than 13,000 employees.
Some of UPMC’s growth also reflects its continued expansion: UPMC included its integration of the Washington Health System, which was finalized on June 1, 2024, as part of its latest filing.
The accounting changes and acquisitions appeared to bolster the healthcare giant’s long-term financial health, as the organization increased the net value of its assets from $8.3 billion to $12.7 billion.
UPMC is continuing to grow. In May, the health system signed an agreement to integrate Trinity Health System in Ohio, with plans to close the deal by the end of the year. This would expand UPMC’s operations beyond the four states it currently operates in: Pennsylvania, New York, West Virginia and Maryland. It also operated in three additional countries: Ireland, Italy and Croatia.
Leslie Davis, the president and CEO, earned $13,324,020 in total compensation during the last fiscal year, an increase of 11% from the $12 million she earned the previous year.
UPMC’s tax form listed another 201 employee salaries, including 44 employees and officials who earned more than $1 million. Joan Gabel, the chancellor of Pitt, and Anantha Shekhar, the senior vice chancellor for health sciences at Pitt, are also listed as earning more than $1 million but are employed by the university rather than a UPMC affiliate. Four other employees of UPMC’s insurance division also earned more than $1 million.
UPMC’s largest independent contractor was a joint venture between Whiting Turner and PJ Dick that received more than $250 million in construction contracts as part of the construction of the Heart and Ttransplant Hospital at UPMC Presbyterian.
UPMC’s tax filing also gives a comprehensive look at the amount and type of healthcare it provides. UPMC’s more than 40 hospitals admitted a total of 265,468 patients for a total 1,326,042 days. It served 1,033,235 patients during emergency room visits and 7,145,417 outpatient visits. It performed 273,891 surgeries and 763 transplants.
Oliver Morrison is the health and environment reporter at Pittsburgh’s Public Source and can be reached at oliver@publicsource.org.
Feixu Chen contributed reporting for this story and fact-checked it.
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