The article “UPMC to get $1 billion in federal aid after hard hit from coronavirus pandemic” (May 29, TribLIVE) explains that UPMC sustained a $41 million operating loss for the first three months of this year. In response, UPMC has received $255 million through the Coronavirus Aid, Relief and Economic Security (CARES) Act. That’s a whopping $214 million more than the loss incurred!
In contrast, Allegheny Health Network has sustained a $160 million operating loss from mid-March through April, but it received only $68 million through the CARES Act (“Covid-19 lockdown costs Allegheny Health Network hospitals $160M in revenue; system gets $300M in federal aid,” May 29, TribLIVE). That’s $92 million less than the loss incurred. What is going on here?
Furthermore, UPMC is a $20.6 billion entity with a net income (i.e., the nonprofit’s profits) of $420 million in 2019. With those kinds of numbers, UPMC surely could afford to absorb a $41 million loss, and that $255 million could have gone to more deserving entities.
It pains me to see our tax dollars propping up UPMC’s 2020 profits, officers’ salaries and bonuses while small-town hospitals and medical centers are closing.
Edward Pencoske
Penn Township, Westmoreland County