The University of Pittsburgh Medical Center laid off 500 workers, joining other healthcare companies that are adjusting to recent economic discomfort. These are difficult times, and we need to remain strong, said UPMC spokesman Frank Raczkiewicz. We are reducing our workforce by 1%, or 500 people. He said the majority of the layoffs at the 50,000-employee system were nonclinical administrative and managerial positions, and all 500 dismissals were done in as respectful a manner as possible. Its been a systemwide effort. This was decided by each individual manager at each facility, he said. All 500 people were notified this week.
A written statement released by the company said UPMC officials are prepared to do business in a deteriorating economy and that the layoffs were part of an effort to ensure that our growth in expenses is not outpacing our growth in revenues. In the results of Modern Healthcare 2008 Hospital Systems Survey, UPMC was ranked as the nations fourth-largest secular not-for-profit healthcare systems, with 18 hospitals.
A UPMC quarterly earnings report for the period ended Sept. 30 shows operating income increased by $1 million compared with the same quarter last year, with income of $63 million on operating revenue of $1.9 billion. But the company posted $283 million more in expenses than revenue in the most recent quarter, with operating margins decreasing to 3.3% from 3.7% in the same quarter last year. -- by Joe Carlson