UPMC laying off 1,000 employees
UPMC announced Wednesday, April 24 it is laying off 1% of its workforce.
The health care system employs more than 100,000 employees, meaning about 1,000 are losing their jobs.
In a statement, Paul Wood, vice president and chief communications officer, said job cuts were primarily “among non-clinical, non-member-facing, administrative staff.”
Affected employees will get severance pay and benefits coverage, Wood said.
“The entire health care industry continues to face the realities of a still-evolving, post-pandemic marketplace,” Wood stated. “UPMC is responding to these challenges and opportunities while remaining true to its mission of providing exceptional care for patients, employees, members, and communities.
“To ensure that UPMC continues to thrive as a leading, successful health care 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,” the statement continued. “This realignment will not alter UPMC’s investments in our communities, facilities, commitment to clinical care and research, strategic growth, or to offering those throughout our workforce industry-leading benefits.”
According to previous Butler Eagle reporting, UPMC reported an operating loss of $198 million during the 2023 fiscal year, in comparison to a $162 million profit in 2022.
“ … Increased costs in the labor and supply markets, increases to medical claims expense as a result of higher utilization, pharmaceutical expenses across various insurance products, and certain legal settlements” contributed to the losses, UPMC reported in its financial statement.
The layoffs come as the company waits to have its proposed merger finalized with Washington Health System in Washington and Greene counties. According to the Pittsburgh Business Times, Washington Health System projects multimillion dollar losses by the end of this fiscal year as well as for 2025.
In the past few months, representatives, including state Rep. Tim O’Neal, R- 48th, have advocated for Washington Health System’s absorption into UPMC. During a news conference April 9, Washington Mayor JoJo Burgess said without the merger, nearly 300,000 people in Washington and Greene counties risk losing health care.
