(TNS) — Highmark Health took in $27.1 billion in 2023, resulting in $533 million in net income, the company announced this week.
The Pittsburgh-based company cited strong performance involving most of its business units, which include health and dental insurance, a unit devoted to new technology, and the Allegheny Health Network of hospitals and doctors in western Pennsylvania.
Highmark said insurance plan membership has been “steady,” growing 32% to about 7 million over the past decade, making Highmark the largest health insurance provider in Pennsylvania, Delaware, West Virginia and western New York.
In 2023, Highmark added 31,000 Medicare Advantage customers and 40,000 customers covered by Highmark Affordable Care Act plans, the company said while announcing its 2023 financial results.
“We have transformed from a successful regional insurer into an innovative diversified health organization with comprehensive solutions and national influence,” Highmark CEO David Holmberg said.
Highmark recently laid off about 110 people, including 40 in central Pennsylvania, where Highmark employs about 3,500. The company attributed the layoffs to ongoing “transformation” focused on new technology and tools that can yield higher patient satisfaction at lower cost.
Some employees have been critical, saying U.S. jobs have been outsourced to foreign countries.
Karen Hanlon, the chief financial officer for Highmark Health, responded to the criticism, stressing that Highmark added 6,100 employees in 2023, growing its workforce by about 2% to 44,000. About 40,000 of those are based in the United States.
Hanlon acknowledged that some of the 2023 employment growth involves jobs in foreign countries, but said net U.S. employment increased.
She said the outsourcing is necessary “to make sure that we’re able to operate on a 24/7, 365 day [per year] basis, to serve the customers we have who expect that sort of service.”
She said future outsourcing will hinge on new technologies and the evolving needs of customers.
“We take that all very seriously,” she said of the impact on Highmark employees. “We’re pretty thoughtful about the process we’re working through.”
Allegheny Health Network lost $117 million in 2023, which Holmberg said wasn’t a surprise, “given that most health systems have struggled to return to profitability” following the COVID-19 pandemic. However, patient volume increased in 2023 and operating revenue grew to $4.7 billion, up from $4.4 billion.
Holmberg said gains from Highmark’s other businesses and investments offset the Allegheny Health Network loss.
“One of the strengths of Highmark Health is the fact we have all these diversified businesses,” he said.
