UPMC executives have come under fire for awarding themselves significant raises and flying in a private jet while simultaneously laying off employees and increasing patient fees. This has sparked outrage among staff and patients, who feel the nonprofit is prioritizing profits over community care.
Key Takeaways
UPMC executives received substantial raises, with the CEO earning over $10 million annually.
The company hired McKinsey & Co. to assist with restructuring, leading to over 1,000 job cuts.
UPMC's private jet was used for trips to Florida, Rome, and Dublin, among other locations.
Patients have reported increased fees and decreased quality of care.
Local leaders criticize UPMC for acting more like a for-profit corporation than a nonprofit.
Executive Compensation and Private Jet Use
UPMC's top executives, including CEO Leslie C. Davis, have seen their pay soar, with Davis earning over $10 million per year. Former CEO Jeffrey Romoff continues to receive millions in deferred compensation even after his retirement in 2021. Meanwhile, UPMC executives have been using a leased Bombardier Global 6500 jet for various trips, including visits to Florida, Rome, and Dublin.
Job Cuts and Outsourcing
In a bid to cut costs, UPMC hired consulting firm McKinsey & Co., known for helping companies downsize. This led to over 1,000 job cuts, affecting many lower-level employees, including single mothers. Despite promises not to cut public-facing staff, many employees found themselves replaced by outsourced workers in the Philippines.
Impact on Patients
Patients have reported increased fees and a decline in the quality of care. Ron Kaplan, a recent UPMC patient, switched to a UPMC primary care provider only to find that routine blood work cost $160 more than at his previous doctor. Complaints to UPMC's customer service, now partially outsourced, went unresolved.
Local Criticism and Community Impact
Local leaders and community advocates argue that UPMC is failing to invest in the Pittsburgh community. The nonprofit's reluctance to pay more property taxes on its $1.7 billion in real estate and its focus on global expansion have drawn comparisons to a Gilded Age monopoly. Critics question whether UPMC should retain its nonprofit status given its corporate behavior.
Conclusion
The actions of UPMC executives have led to widespread criticism and concern among employees, patients, and local leaders. As the nonprofit continues to expand globally while cutting local jobs and raising fees, many are questioning its commitment to the Pittsburgh community.
Comentários