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U. of Pittsburgh Medical Center to add 500 jobs

PITTSBURGH - The University of Pittsburgh Medical Central plans to add 500 jobs this fiscal year after announcing operating income that jumped 13 percent in the fiscal year that ended June 30.

PITTSBURGH - The University of Pittsburgh Medical Central plans to add 500 jobs this fiscal year after announcing operating income that jumped 13 percent in the fiscal year that ended June 30.

The 20-hospital network generated $8 billion in revenue and netted $240 million in operating income for fiscal 2010, up from $212 million in 2009.

The increased income comes after two years of steep decreases. UPMC's operating income was $321 million in 2006, but dropped to $220 million in 2007 and $184 million in 2008.

Most of the jobs will be added at two of the network's major Pittsburgh hospitals, UPMC Presbyterian and UPMC Shadyside, though nurses and physician assistants could also be hired at UPMC Passavant, north of the city, Magee Womens Hospital, in Pittsburgh, and UPMC McKeesport, about 15 miles away.

Admissions at the McKeesport hospital have increased since UPMC Braddock hospital closed earlier this year in another suburb.

"That hospital is doing extremely well, and it's viable," senior vice president and chief financial officer Robert DeMichiei said.

UPMC's financial news comes as the region's second-largest health care system continues to consolidate and cut jobs.

The West Penn Allegheny Health System in June announced that Allegheny General Hospital will become its flagship while West Penn Hospital, which is also in Pittsburgh, will close its emergency room and move most of its medical and surgical programs to AGH. West Penn will maintain its burn center, a women's and infants' center, and inpatient rehabilitation programs.

The moves are expected early next year and West Penn's president and chief executive officer Christopher Olivia said they could cost up to 1,500 jobs. The decision was driven partly by changes in the nation's health care system, pushed by President Barack Obama's administration.

Despite the recent financial rebound, DeMichiei said the global economy and the health care reforms are pressuring UPMC, too.

"We've laid a foundation for being successful. If anyone can survive in the future, it will be UPMC," DeMichiei said.