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Pittsburgh health system cuts 213 jobs

By Richard Pizzi

The West Penn Allegheny Health System, a Pittsburgh-based, six-hospital health system, has cut 213 full-time jobs in its hospitals and corporate offices.

The job reduction brings the total number of positions eliminated by WPAHS to 398 full-time equivalents since July 2009. The health system employs approximately 13,000 people and has struggled financially for several years.

WPAHS, western Pennsylvania's second-largest hospital network, posted a $4.2 million quarterly gain in December, but with an operating loss of $4.1 million.

"This is a very difficult decision for our organization, but a necessary action given the economic challenges that we and all healthcare providers locally and throughout the country are facing in the current recession," said WPAHS spokesman Dan Laurent in a prepared statement. "Very few" positions eliminated were related to direct patient care, he said.

WPAHS lost $63 million in the fiscal year that ended June 30, 2008 because of a $73 million accounting error that overstated its net accounts receivable.