University of Pennsylvania Health System cuts 300 positions

The University of Pennsylvania Health System said Tuesday it is cutting about 300 positions.

The cuts equate to less than 1% of the system's total workforce. More than 100 of the affected positions were either vacant or held by employees looking to retire in the coming months, a spokesperson said.

Related: Why health systems are cutting hundreds of administrative jobs

The system, which is part of Penn Medicine, did not provide details on what types of jobs were affected or when the layoffs would go into effect. The spokesperson said affected employees have been notified and the changes will not lead to a discontinuation of patient services.

Philadelphia-based Penn Medicine includes the University of Pennsylvania Health System and the Perelman School of Medicine. The health system operates six hospitals, in addition to behavioral health and rehabilitation facilities. It employs about 49,000 people.

The system reported net income of $298.9 million in the six months ended Dec. 31, compared with net income of $226.5 million in the year-ago period, according to its most recent financial report.

"Penn Medicine is working to ensure strong financial footing while growing care for more patients across the region amidst continued changes and pressures for the field," the spokesperson said.

Penn Medicine recently found itself embroiled in discussions surrounding Prospect Medical Holdings' bankruptcy proceedings. Prospect filed for Chapter 11 bankruptcy protection in January and has sought to sell off its hospitals and related assets across multiple states — including Crozer Health in Pennsylvania.

Prospect Medical attorneys told a judge earlier this week there are plans in motion to keep Crozer Health facilities open, noting a partnership with Penn Medicine, Delaware County and other parties. That stoked reports of a Penn Medicine acquisition. However, a Penn spokesperson disputed those claims and called them inaccurate.

"We are actively working with a range of partners to explore potential solutions to ensure care continuity for patients in southern Delaware County. A successful plan will require funding commitments and assistance from multiple stakeholders, including health systems, the state, county and foundations," the spokesperson said.

Another bankruptcy hearing is set for Wednesday afternoon.

A Crozer spokesperson did not respond to a request for comment.