The University of Pittsburgh Medical Center seeks to raise about $1.6 billion to fund improvements to its facilities, according to financial documents released this week.
A spokeswoman said the Pennsylvania nonprofit system will use most of the proceeds to “continue to invest in its facilities and communities.” About $350 million of the total will repay the previous debt.
This marks UPMC’s largest bond issuance to date, followed by an issue of about $920 million a year ago.
Some of the proceeds will go to the new UPMC Presbyterian, a 17-story, 900,000-square-foot inpatient tower under construction in Oakland with a capacity of 636 hospital beds. The project is worth approximately $1.5 billion and is located at the site of the current UPMC Presbyterian hospital, which is expected to open in 2026.
The new tower is one of three pending construction projects announced in late 2017. Another, Mercy Pavilion, is a nine-story, 410,000-square-foot facility for rehabilitation and patient care. blind. The spokesperson said it expects to begin seeing patients on May 1. The spokesperson said the third project, a cancer facility in Shadyside, is still in the planning stages. .
UPMC spent $994 million on capital projects in 2022.
UPMC, which operates 40 hospitals, 800 physician offices and outpatient facilities, and an insurance division of 4.5 million members, reported operating income of $162 million in 2022. , compared with $843 million the year before. Revenue increased 4.8% to $25.5 billion and expenses increased 7.5% to $25.3 billion.
