UPMC trims workforce by 1,000
Layoffs are affecting nonclinical, non-member-facing administrative staff through attrition, closing of open positions and reducing redundancies.
Photo: Courtesy of UPMC
UPMC has confirmed that it is laying off an estimated 1,000 staff members, or 1% of its 100,000-plus workforce.
"To ensure that UPMC continues to thrive as a leading, successful healthcare organization, limited reductions are occurring throughout the health system primarily among non-clinical, non-member-facing, administrative staff through attrition, closing of open positions, elimination of redundancies and other actions, said Paul Wood, vice president and chief communications officer for UPMC. "These actions impact a little more than 1% of the staff members throughout UPMC's 100,000+ workforce across its businesses systemwide.'
Enhanced severance pay and benefits coverage are being provided, he said.
WHY THIS MATTERS
The 40-hospital system had an operational loss of $198 million in 2023, according to the Pittsburgh Post-Gazette. In addition to UPMC, Allegheny Health Network and Independence Health System in Western Pennsylvania also had operating losses in 2023, the report said.
"The entire healthcare industry continues to face the realities of a still-evolving, post-pandemic marketplace, Wood said. "UPMC is responding to these challenges and opportunities while remaining true to its mission of providing exceptional care for patients, employees, members, and communities."
The realignment will not alter UPMC's investments in communities, facilities, commitment to clinical care and research or strategic growth, he said.
THE LARGER TREND
Earlier this month, lawmakers in Western Pennsylvania issued a plea to the state and its attorney general to allow Washington Health System to merge with UPMC.
The Western Pennsylvania Washington Health System has become financially not viable and needs to merge with the larger health system to avoid closing, putting the healthcare of 300,000 in the region at risk, according to Washington Health System in what it called a "A Call for Action."
The Federal Trade Commission began a review of the merger in January.
Email the writer: SMorse@himss.org
