Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $400,000

• 2a · Program service revenue: ANCILLARY CARE

  total $269,569,026 · related or exempt $269,357,830 · unrelated business $211,196

• 2b · Program service revenue: INPATIENT ROUTINE CARE

  total $66,027,278 · related or exempt $66,027,278

• 2c · Program service revenue: CLINICS, HH, & HOSPICE

  total $32,399,790 · related or exempt $32,399,790

• 2d · Program service revenue: EMERGENCY CARE

  total $19,289,919 · related or exempt $19,289,919

• 2e · Program service revenue: OTHER PROGRAM SERVICE

  total $2,031,835 · related or exempt $2,031,835

• 3 · Investment income

  total $12,603,045 · excluded $12,603,045

• 6a · Gross rents

  real property $1,820,825

• 6b · Less rental expenses

  real property $1,953,605

• 6c · Rental income or loss

  real property -$132,780

• 6d · Net rental income or loss

  total -$132,780 · excluded -$132,780

• 7a · Gross sales of assets other than inventory

  other assets $6,511

• 7b · Less cost or other basis and sales expenses

  other assets $0

• 7c · Gain or loss

  other assets $6,511

• 7d · Net gain or loss

  total $6,511 · excluded $6,511

• 11a · Other revenue: CLINICS & PRACTICES

  total $2,195,378 · related or exempt $2,195,378

• 11b · Other revenue: CAFETERIA INCOME

  total $1,482,377 · related or exempt $1,482,377

• 11c · Other revenue: COUSELING SERVICES

  total $743,145 · related or exempt $743,145

• 11d · All other revenue

  total $402,170 · related or exempt $168,266 · unrelated business $233,904

• 11e · Other revenue, total

  $4,823,070

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $8,030,143 · program services $7,468,033 · management and general $562,110

• 7 · Other salaries and wages

  total $172,094,711 · program services $160,048,081 · management and general $12,046,630

• 9 · Other employee benefits

  total $28,884,189 · program services $26,862,296 · management and general $2,021,893

• 10 · Payroll taxes

  total $10,156,776 · program services $9,445,802 · management and general $710,974

• 11b · Fees: legal

  total $532,086 · management and general $532,086

• 11f · Fees: investment management

  total $73,942 · management and general $73,942

• 11g · Fees: other

  total $1,301,573 · program services $1,210,463 · management and general $91,110

• 12 · Advertising and promotion

  total $392,736 · management and general $392,736

• 13 · Office expenses

  total $5,018,362 · program services $4,667,077 · management and general $351,285

• 14 · Information technology

  total $5,407,599 · program services $5,029,067 · management and general $378,532

• 16 · Occupancy

  total $7,384,044 · program services $6,867,161 · management and general $516,883

• 17 · Travel

  total $907,205 · program services $843,701 · management and general $63,504

• 19 · Conferences, conventions and meetings

  total $55,242 · management and general $55,242

• 20 · Interest

  total $8,102,939 · program services $7,535,733 · management and general $567,206

• 22 · Depreciation, depletion and amortization

  total $22,828,340 · program services $21,230,356 · management and general $1,597,984

• 23 · Insurance

  total $171,994 · management and general $171,994

• 24a · Other expenses: DRUGS

  total $27,887,581 · program services $27,887,581

• 24b · Other expenses: MEDICAL/PATIENT SUPPLIE

  total $22,529,553 · program services $22,529,553

• 24c · Other expenses: OTHER EXPENSES

  total $18,096,107 · program services $16,829,380 · management and general $1,266,727

• 24d · Other expenses: MEDICAL IMPLANTS

  total $14,062,986 · program services $14,062,986

• 24e · All other expenses

  total $26,855,357 · program services $24,603,356 · management and general $2,252,001

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $23,730,805 · end of year $18,236,340

• 4 · Accounts receivable

  beginning of year $61,946,601 · end of year $17,452,562

• 8 · Inventories for sale or use

  beginning of year $2,666,421 · end of year $3,498,232

• 9 · Prepaid expenses and deferred charges

  beginning of year $200,356 · end of year $504,325

• 10a · Land, buildings and equipment: cost or other basis

  $266,002,127

• 10b · Land, buildings and equipment: accumulated depreciation

  $89,965,070

• 10c · Land, buildings and equipment, net

  beginning of year $190,304,289 · end of year $176,037,057

• 11 · Investments: publicly traded securities

  beginning of year $6,048,730 · end of year $6,055,375

• 13 · Investments: program-related

  beginning of year $62,352,707 · end of year $57,704,662

• 15 · Other assets

  beginning of year $42,582,667 · end of year $44,079,665

• 17 · Accounts payable and accrued expenses

  beginning of year $6,233,756 · end of year $19,348,074

• 19 · Deferred revenue

  beginning of year $2,389,537 · end of year $3,628,861

• 25 · Other liabilities

  beginning of year $13,415,719 · end of year -$258,565

• 27 · Net assets without donor restrictions

  beginning of year $367,033,544 · end of year $300,074,279

• 28 · Net assets with donor restrictions

  beginning of year $760,020 · end of year $775,569

The filer's explanations (Part III)

PART I, LINE 1A

UPMC MAY PROVIDE THE FOLLOWING BENEFITS TO CERTAIN EXECUTIVES WHEN THEY ARE NECESSARY TO ACHIEVE UPMC'S CHARITABLE MISSION OBJECTIVES: FIRST-CLASS OR PAYMENTS; AND/OR BUSINESS CLUB DUES OR INITIATION FEES. PROVISION OF ANY IS SUBJECT TO REVIEW AND APPROVAL PROCESSES, AND IS TREATED AS TAXABLE CHARTER TRAVEL; TRAVEL FOR COMPANIONS; TAX INDEMNIFICATION OR GROSS UP SUCH BENEFITS IS PREDICATED ON COMPLIANCE WITH THE ORGANIZATION'S POLICIES, INCOME TO THE EXECUTIVES WHERE REQUIRED UNDER THE INTERNAL REVENUE CODE.

PART I, LINE 4B

ALL PERSONS PARTICIPATING IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN ARE DISCLOSED IN SCHEDULE J WITH CORRESPONDING AMOUNTS DISCLOSED WITHIN THE TOTAL AMOUNT IN SCHEDULE J COLUMN C "RETIREMENT AND OTHER DEFERRED COMPENSATION". DUE TO RESTRICTIONS IMPOSED BY THE INTERNAL REVENUE CODE ("CODE"), CERTAIN OFFICERS AND KEY EMPLOYEES ARE LIMITED IN THE AMOUNT OF BENEFITS WHICH MAY BE RECEIVED UNDER A TAX QUALIFIED RETIREMENT PROGRAM. LIKE MANY EMPLOYERS, UPMC SUPPLEMENTS ITS RETIREMENT BENEFITS THROUGH A SUPPLEMENTAL RETIREMENT PROGRAM. THE SUPPLEMENTAL RETIREMENT PROGRAM IS SUBJECT TO MULTI YEAR VESTING WHICH PLACES THE OFFICERS AND KEY EMPLOYEES' RETIREMENT BENEFIT AT RISK OF FORFEITURE IF THE VESTING REQUIREMENTS ARE NOT SATISFIED. ONCE VESTED HOWEVER, PROVISIONS OF THE CODE REQUIRE THAT THE VESTED AMOUNTS BE REPORTED ON THE FORM 990 AND THE VESTED OFFICER OR KEY RETIREMENT BENEFIT. NOTWITHSTANDING THE TAX REQUIREMENT TO RECOGNIZE THE FICA TAXATION AND REPORTING PURPOSES, THIS BENEFIT, WHICH GENERALLY HAS DISTRIBUTED UNTIL THE OFFICER OR KEY EMPLOYEE RETIRES OR SEPARATES FROM EMPLOYEE INCLUDE IN CURRENT INCOME THE VALUE OF HER OR HIS SUPPLEMENTAL VESTED AMOUNT OF THE SUPPLEMENTAL RETIREMENT BENEFIT AS CURRENT INCOME FOR BEEN EARNED OVER HER OR HIS ENTIRE CAREER, HAS NOT AND WILL NOT BE SERVICE FROM UPMC AND SATISFIED THE NON-COMPETE PROVISION OF THEIR EMPLOYMENT AGREEMENT AND/OR SATISFY A POST-RETIREMENT SEPARATION AGREEMENT. THE SUPPLEMENTAL RETIREMENT PROGRAM PROVIDES FOR THE CURRENT DISTRIBUTION OF ONLY THE AMOUNT NECESSARY TO SATISFY ANY INCOME TAX LIABILITY RESULTING FROM THE VESTING DURING ACTIVE EMPLOYMENT. FINALLY, IT SHOULD BE NOTED THAT IN ACCORDANCE WITH IRS INSTRUCTIONS, A SUBSTANTIAL PORTION OF THE AMOUNT REPORTED ON THE FORM 990 ATTRIBUTABLE TO SUPPLEMENTAL RETIREMENT PROGRAM VESTING HAS BEEN REPORTED IN PREVIOUSLY FILED FORMS 990. MICHELE R. MARTZ - $100,555 MATTHEW SIMMONS, MD - $6,285

PART I, QUESTION 7

UPMC PROVIDES INCENTIVE COMPENSATION AS PART OF ITS TOTAL COMPENSATION PROGRAM FOR OFFICERS AND KEY EMPLOYEES. THIS COMPONENT IS BASED UPON THE ACCOMPLISHMENT OF PREDETERMINED PERFORMANCE GOALS AND OBJECTIVES WHICH FOCUS ON THE ACHIEVEMENT OF MULTIPLE ANNUAL AND THREE YEAR INDIVIDUAL AND GROUP PERFORMANCE CRITERIA IN THE CONTEXT OF APPROPRIATE RISK TAKING. THESE CRITERIA DIRECTLY SUPPORT UPMC'S MISSION AND INCLUDE: PATIENT QUALITY AND SATISFACTION, COMMUNITY BENEFITS, OPERATIONAL AND FINANCIAL STRENGTH, LEADERSHIP DEVELOPMENT, AND STRATEGIC BUSINESS INITIATIVES AMONG OTHERS.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• WESTERN MARYLAND PHYSICIAN NETWORK LLC

  CLINICAL SVCS · MD · income $292,091 · assets $5,740,799

  Directly controlled by UPMC WESTERN MARYLAND CORPORATION

• UPMC WESTERN MD HEALTH SERVICES LLC

  CLINICAL SVCS · MD · income $0 · assets $0

  Directly controlled by UPMC WESTERN MARYLAND CORPORATION

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• HAYSTACK IMAGING

  RELATED · HEALTH CARE · MD · 50% owned · share of income $2,243,252 · share of assets $3,336,179 · general or managing partner

• SURGCENTER OF WESTERN MARYLAND

  RELATED · SURGERY · MD · 38.67% owned · share of income $77,678 · share of assets $1,380,575 · general or managing partner

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• WILLOWBROOK HC CONDO

  C · CONDO MGMT · MD · 53% owned · share of income $57,090 · share of assets $497,741 · controlled entity

  Directly controlled by UPMCWM

• HAYSTACK CONSOLIDATED

  C · MED SVCS · MD · 100% owned · share of assets $1,212,457 · controlled entity

  Directly controlled by UPMCWM

• WESTERN MARYLAND INSURANCE COMPANY

  C · INSURANCE · CJ · 100% owned · share of income $2,437,157 · share of assets $23,669,956 · controlled entity

  Directly controlled by UPMCWM