UPMC To Cut 1,000 Roles

Dive Brief:

• The University of Pittsburgh Medical Center is laying off about 1,000 employees — a little over 1% of its total workforce, the health system confirmed to Healthcare Dive.
• The layoffs will impact primarily nonclinical and administrative functions, according to UPMC Vice President and Chief Communications Officer Paul Wood. The reductions include attrition, closing open positions and eliminating role redundancies.
• UPMC said challenges posed by the “still-evolving post-pandemic marketplace” caused the health system to downsize.

Dive Insight:

UPMC follows several of its nonprofit peers in trimming non-patient facing staff.

Last year, Kaiser Permanente, Novant Health and Mass General Brigham cut tech roles. This year, Marshfield Clinic said it would cut around 300 workers to reduce labor costs.

Like other nonprofits, including Mass General Brigham and Providence, rising expenses continue to vex UPMC, climbing approximately 10% from 2022 to total $27.9 billion in 2023.

The health system, which operates a network of 40 hospitals and 800 doctors offices and outpatient clinics across three states and abroad, reported a $198.3 million operating loss in 2023 compared to an operating gain of $162.1 million in 2022.

The layoffs “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 Wood.

The nonprofit said it will offer enhanced severance pay and benefits coverage to those impacted by the layoffs.