General Discussion

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According to the Texas Health Market Review, both organizations remain profitable. Texas Health Resources saw an 11 percent profit margin on $5.4 billion in patient revenues in 2023, and the University of Texas system had a 9.8 percent margin on more than $10 billion in revenue across the state. The review found that BCBSTX’s HMO plan had the healthiest profit margin of 4.5 percent on more than $308 million in revenue in 2023. But according to research firm Mark Farrah and Associates, BCBSTX’s parent company Health Care Services Corp., which covers 26 million lives nationwide, saw a significant decline in profitability between 2023 and 2024. Between the third quarter of 2023 and the third quarter of 2024, HCSC’s profit margin dropped from 3.9 percent to 1 percent.