UPMC executives have come under fire for awarding themselves substantial raises and flying in a private jet while simultaneously cutting jobs and increasing patient fees. This has sparked outrage among employees and patients, who feel the nonprofit healthcare giant is prioritizing profits over people.
Key Takeaways
- UPMC executives received significant pay raises, with the CEO earning over $10 million annually.
- The company hired McKinsey & Co. to assist in laying off over 1,000 workers.
- UPMC has been criticized for outsourcing jobs to the Philippines and raising patient fees.
- The nonprofit’s community investments rank low compared to other American hospitals.
- Local leaders question UPMC’s nonprofit status due to its corporate-like behavior.
Executive Pay and Private Jet Travel
UPMC’s top executives, including CEO Leslie C. Davis, have been receiving hefty paychecks, with Davis earning over $10 million per year. Former CEO Jeffrey Romoff, who retired in 2021, continues to make millions in deferred compensation. Despite these high salaries, UPMC executives have been flying in a private jet, a Bombardier Global 6500, for business trips, including visits to international locations like Rome and Dublin.
Job Cuts and Outsourcing
In a move to cut costs, UPMC hired consulting firm McKinsey & Co. to help lay off over 1,000 workers. The layoffs have disproportionately affected working single mothers and other vulnerable employees. UPMC has also outsourced customer service jobs to the Philippines, replacing local workers with overseas staff. This has led to concerns about the quality of service and compliance with healthcare regulations.
Increased Patient Fees
Patients have reported a rise in fees for routine services, such as blood tests, making healthcare more expensive. Ron Kaplan, a recent UPMC patient, experienced a $160 increase in the cost of routine blood work after switching to a UPMC primary care provider. Complaints about these fees have often gone unresolved, adding to patient frustration.
Community Impact and Criticism
Local leaders and community advocates argue that UPMC’s actions are more in line with a for-profit corporation than a nonprofit healthcare provider. The company has been slow to raise its minimum wage and has invested heavily in marketing and international expansion while cutting local jobs. Critics also point out that UPMC’s community investments are minimal compared to other American hospitals.
Calls for Change
Advocates are calling for UPMC to do more to support its local employees and invest in the Pittsburgh community. There are growing calls for the company to lose its nonprofit tax status if it continues to prioritize executive compensation and international expansion over local care. The situation has raised questions about the role and responsibilities of nonprofit healthcare providers in serving their communities.