Dive Brief:
University of Pennsylvania Health System will eliminate approximately 300 positions across its team of 49,000 as the health system seeks to ensure its long term financial stability amid industry-wide pressures, a spokesperson said Wednesday.
More than 100 of the impacted positions are currently vacant or are held by employees who have previously announced plans to retire, the spokesperson said.
The layoffs at Penn Medicine follow recent workforce reductions at other academic medical centers. Yale New Haven Health and Mass General Brigham have also cut staff this year.
Dive Insight:
Penn Medicine, which currently operates six hospitals and 11 multispecialty centers, is the latest academic medical center to cut staff, citing “continued changes and pressures for the field.”
“Like other health systems across the United States, Penn Medicine is working to ensure strong financial footing while growing care for more patients across the region,” a spokesperson said. “The position eliminations will not result in discontinuation of any patient care services or programs.”
The system is owned by the University of Pennsylvania, which is embroiled in a battle with the Trump administration over the status of funding for medical research, after the administration took issue with the university allowing a transgender student to compete in women’s athletics in 2022. The administration has currently terminated $175 million in research funds, including funds for studies on preventing hospital-acquired infections.
The administration has also proposed capping the federal reimbursement rate for indirect research costs nationwide at 15% — well below current reimbursement rates of between 27% to 28%.
Since the policy announcement, Penn Medicine has reportedly paused pilot grant programs due to uncertainty about the future of research funds, according to a report from the Daily Pennsylvanian.
Jonathan Epstein, dean of the Perelman School of Medicine, said the medical school alone could lose $140 million if the cuts go into effect, according to reporting from local news outlet WHYY.
A spokesperson for Penn Medicine did not respond to requests for comment about whether the layoffs are linked to funding cuts.
