UPMC To Cap Costs, May Consider Layoffs

The University of Pittsburgh Medical Center is the regions largest employer and the slowing economy is forcing it to look for ways to cost costs.

The hospital said it is putting a cap on salary-related costs because of the deteriorating economy nationwide, and this may include layoffs.

The representative said 2007 salary-related costs rose about 10 percent as UPMC hired more than 6,000 people.

In 2008, the hospital wants to limit salary-related costs to no more than a 5 percent increase. It expects to hire a slightly smaller number of people than last year.

The UPMC representative said department heads will decide how to meet their cost objectives and whether layoffs will be necessary.