UPMC to cut 1,000 jobs

Health care giant UPMC is laying off about 1,000 employees throughout its 40-hospital system, which follows an operational loss of $198 million in 2023.

In a statement, Chief Communications Officer Paul Wood said the job cuts are mostly among non-clinical and administrative staff and that affected employees will receive “enhanced severance pay and benefits coverage.” Many of the cuts were made to unfilled positions and administrative staff through attrition, he said.

UPMC employs more than 100,000 people systemwide.

“The entire health care industry continues to face the realities of a still evolving, post-pandemic marketplace,” Mr. Wood said in a statement. “UPMC is responding to these challenges and opportunities while remaining true to its mission of providing exceptional care for patients, employees, members and communities.”

All three of the biggest health care systems in Western Pennsylvania reported losses from operations last year. In addition to UPMC, Allegheny Health Network and Independence Health System also had operating losses in 2023.

UPMC lost money on operations despite an 8% revenue gain from core operations to $27.7 billion last year and a 3% increase in outpatient activity to 84,918 for the year. When it released those results earlier this year, the Pittsburghbased health system pointed to higher costs for labor and supplies as issues.

The layoffs come as UPMC’s bid to merge with Washington Health System in Washington, Pa., undergoes regulatory scrutiny. That health system has projected losses in the fiscal year ending June 30, continuing a trend of annual losses there.