Pittsburgh-based Highmark Health reported a $674 million operating loss in 2025, reflecting continued insurance headwinds despite improved performance at its hospital division.
Highmark — which operates health plans, health system Allegheny Health Network and several other businesses — reported a net loss of $175 million for the 12 months ended Dec. 31, according to a March 24 news release.
In 2024, Highmark reported a $209 million operating loss and $50 million net income.
Highmark Health Plans
Highmark’s insurance arm reported a $609 million operating loss in 2025, compared to a $166 million operating loss in 2024.
The insurance business reported operating revenue of $24.8 billion, up from $22 billion.
Highmark said that while elevated utilization and claims trends are expected to persist in 2026, its health insurance business has made adjustments to pricing and product mix to better position itself for recovery.
Allegheny Health Network
The 14-hospital health system reported an operating income of $90 million in 2025, up from a $147 million operating loss in 2024.
The health system reported total operating revenue of $5.7 billion, up from $5.1 billion.
Allegheny Health Network’s 2025 results included $54 million in COVID-19 relief settlement funds from the Federal Emergency Management Agency.
Highmark attributed Allegheny Health Network’s $237 million year-over-year improvement to volume growth and operational efficiency efforts.
Pending M&A moves
In October, Allegheny Health Network signed an agreement to acquire Heritage Valley Health System, a two-hospital health system in Beaver, Pa. Heritage Valley Beaver (Pa.) and Heritage Valley Sewickley (Pa.) will become AHN’s 15th and 16th hospitals in its network. Heritage Valley’s outpatient clinics and physician practices will be fully integrated into AHN under the transaction. The acquisition is expected to close this year.
Highmark Health announced in December an affiliation agreement with Blue Cross and Blue Shield of Kansas City that is expected to close on March 31. The company is Missouri’s largest nonprofit health insurer, with 1 million members and $3 billion in annual revenue.
“Our scale is our strength, and the strategic affiliations we announced last year will broaden our reach and enhance access to care,” Highmark Health’s CFO and Treasurer Carl Daley said in the release.
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