Highmark Health revenue grows 11% year over year to $8 billion; reports $13 million net income in first quarter of 2025

• Allegheny Health Network reports 10% revenue growth, $8 million operating income, more-than-doubles EBITDA year-over-year

• Highmark Health Plans reports 12% revenue growth, $9 million operating loss driven by elevated industrywide medical cost trends

• Diversified businesses report more than 10% revenue growth, $47 million operating income

PITTSBURGH, May 29, 2025 /PRNewswire/ — Highmark Health announced today consolidated financial results for the first quarter of 2025, with $8 billion in revenue, $15 million in operating income, and $13 million in net income. The organization maintained a strong balance sheet, with $11.8 billion in cash and investments and net assets of $9.9 billion as of March 31, 2025.

AHN reported operating gains driven by operational efficiencies and increased patient volumes across all care delivery areas, including higher volumes related to an unusually high respiratory season. As AHN experienced higher patient volumes, Highmark Health Plans reported elevated utilization and continued industrywide pressures that carried over from 2024. Growth and disciplined pricing drove strong operating performance for UCD and HM Insurance Group.

“Allegheny Health Network had a strong start to the year, reporting a positive operating margin for the first time in five years without pandemic-related assistance,” said Carl Daley, chief financial officer and treasurer of Highmark Health. “This was driven by higher patient volumes as a result of management actions and an unusually severe respiratory season. Highmark Health Plans also experienced increased claims due to this surge, in addition to the broader industry trends of rising costs, particularly for prescription drugs, and greater utilization of physician and outpatient services.”

Highmark Health Plans reported $6.1 billion in operating revenue and a $9 million operating loss for the first quarter of 2025.

AHN reported strong financial performance for the first quarter of 2025, with an operating income of $8 million, an improvement of $39 million year-over-year. Earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled compared to the same period last year, rising to $74 million for the first quarter. AHN’s revenue also increased by 10% year-over-year, reaching $1.4 billion.

Through March 31, 2025, AHN reported increased patient volumes compared to the same period in 2024:

• 4% increase in inpatient discharges and observations
• 3% increase in outpatient registrations
• 7% increase in physician visits
• 6% increase in emergency room visits

Highmark Health’s diversified businesses delivered $800 million in consolidated operating revenue for the first quarter of 2025. United Concordia Dental reported $455 million in operating revenue and $28 million in operating income. HM Insurance Group (HMIG) reported $345 million in operating revenue and $19 million in operating income.

About Highmark Health 

Highmark Health, a Pittsburgh, PA-based enterprise that employs 44,000 people who serve millions of Americans across the country, is the parent company of Highmark Inc., Allegheny Health Network, and enGen. Highmark Inc. and its subsidiaries and affiliates provide health insurance to 7.1 million members in Pennsylvania, West Virginia, Delaware, and New York, as well as dental insurance, and related health products through a national network of diversified businesses. Allegheny Health Network is an integrated delivery network in western Pennsylvania comprised of 14 hospitals, more than 2,600 affiliated physicians, ambulatory surgery centers, an employed physician organization, home and community-based health services, a research institute, a group purchasing organization, and health and wellness pavilions. enGen is focused on meeting the information technology platform and other business needs of the Highmark Health enterprise as well as unaffiliated health insurance plans by providing proven business processes, expert knowledge, and integrated cloud-based platforms. To learn more, visit www.highmarkhealth.org.   

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SOURCE Highmark Health