The University of Pennsylvania Health System told staff Tuesday that it is trimming 300 positions, or about half a percent of the nonprofit’s 49,000 employees. More than 100 of those jobs are vacant or held by people who have announced their retirements.
The health system cuts are part of an effort to be as efficient as possible and to be able to reinvest amid lower levels of profitability in health care following the industrywide increase in the cost of labor and supplies during the COVID-19 pandemic.
In the three years before the pandemic, Penn’s operating profit margin averaged 5.7%. In the last three fiscal years, the average has been 2.2%, according to an Inquirer analysis of Penn’s annual financial statements…