David Holmberg, president and CEO of Highmark Health.
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PITTSBURGH—Highmark Health announced its financial results for the first six months of 2015, citing that its “vision business exceeded all expectations,” according to president and CEO, David Holmberg, who led a conference call with investors and the media yesterday.

Overall revenue for the first half of this year reached $8,670 million, a 3.6 percent increase over the $8,371 million generated during the same period last year. An operating loss of $171 million for the first six months of this year, compared with a gain of $12 million during the same period last year, was due to “unexpectedly high utilization of ACA products,” according to Holmberg.

The company’s Diversified Business—which includes managed vision care company Davis Vision and national optical chain Visionworks along with United Concordia Companies and HM Insurance Group—achieved revenues of $128 million for the six-month period ended June 30, 2015, a 30.6 percent increase over the $98 million in revenue this division generated during the same period last year.

The HVHC, Inc. division, which is composed of Davis Vision, Visionworks and HVHC Distribution & Manufacturing, had operating income of $92 million for the first half of 2015, according to Karen Hanlon, executive vice president and CFO of Highmark Health, who also presented on the call. “Visionworks is poised to achieve its strongest performance to date in 2015,” she said.

Currently at 665 retail stores throughout the country, Visionworks added 15 stores during the first half of this year with plans to reach a total of 55 new stores added during the year by the end of 2015. “We will continue to expand in the range of 50 to 60 per year for the foreseeable future,” said Holmberg. “We don’t have to rush this. We’re trying to make sure we have the right locations.

He cited Michigan and the boroughs of New York City as specific new areas in which Visionworks is expanding due to a significant number of lives covered by Davis Vision in those areas. He said that Visionworks is also pursuing growth in the existing markets of Texas, Florida, and Georgia, stating that one-third of the company’s growth is in existing markets.

Regarding Davis Vision, Holmberg said, “We continue to grow both the top line and the bottom line. In 2016, Davis Vision will provide coverage for 22 million people,” he added, calling attention to the company’s recent selection by The Boeing Company to provide vision coverage for its 342,000 employees, retirees and eligible dependents.