BUSINESS: Financial Highmark Posts Strong First Half 2016 Results By Staff Monday, September 26, 2016 12:23 AM PITTSBURGH—Highmark Health announced financial results for the six months ending June 30, 2016, reporting operating revenue of $9.3 billion, up from $8.7 billion in the year-ago period. Highmark posted an excess of revenue over expenses of $36 million. Excluding the one-time 2015 gains associated with the net assets acquired through the merger with Blue Cross of Northeastern Pennsylvania, and realized gains from the sale of strategic investments, the 2016 results represent an improvement of nearly $200 million over prior year, the company said in a statement. This progress is primarily a result of actions taken to improve performance in the Affordable Care Act (ACA) book of business, strong performance in the commercial health plan business, and the ongoing turnaround of Allegheny Health Network, according to Highmark. The company said it invested nearly a quarter of a billion dollars in its core and growing businesses during the first half of the year, and maintains $6.0 billion in cash and investments and net assets of $5.3 billion.Highmark Health also reported an operating gain of $31 million, which was $202 million ahead of the previous year. The improvement in the results is attributable to reduced losses in the government health plan business, which includes small business, ACA exchange products, Medicaid and Medicare Advantage. The Health Plan's commercial market continued to experience strong customer retention and financial stability, and Highmark Health's diversified businesses, including dental, vision and stop loss, delivered a solid performance, the company said.HVHC Inc., which includes Visionworks' retail operations, manufacturing and distribution facilities, and Davis Vision, reported revenues of more than $800 million and an operating gain of $61 million through June 2016. Visionworks continues to expand its national presence and opened 15 new stores in 2015, bringing its total to more than 660, according to Highmark. Davis Vision has grown enrollment to nearly 22 million lives, including the recent signing of a contract with Boeing to provide coverage to 342,000 retirees, employees and their eligible dependents, VMail previously reported."Despite the growing competition, marketplace challenges and headwinds we face, we continue to improve our competitive position in the markets in which we operate as well as our consolidated and individual business unit financial performance," said David L. Holmberg, Highmark Health's president and chief executive officer. "We remain focused on the execution of our multi-year business strategy and on our transformational journey to get health care right by re-configuring a new, integrated health coverage and care model that redefines the consumer experience and that will work better for everyone."During a conference call Friday with financial analysts and reporters, Holmberg said the Highmark is “on track to become an $18 billion company by the end of the year.”Holmberg also said that Highmark continues to get inquiries from parties interested in purchasing its HVHC vision business, but that he had “nothing to report about any potential transactions.” VMail reported in June, 2016 that Highmark was exploring options which could result in the sale of HVHC.