Hospitals and health systems cut jobs in 2026 amid financial pressures

Oct 14, 2026

Throughout 2026, hospitals and health systems across the United States implemented significant workforce reductions to counter mounting financial strains. Executives cited lower reimbursement rates, federal policy shifts, and escalating labor, supply, and pharmaceutical costs as primary causes. Major organizations, including Wellstar, Trinity Health, and Dartmouth Health, eliminated hundreds of administrative, leadership, and IT roles or restructured operations to preserve long-term sustainability.

Overview and drivers of hospital job cuts

▪Multiple hospitals and health systems across the United States announced workforce reductions and job eliminations throughout 2026 to stabilize finances and maintain long-term operational sustainability.
▪Healthcare executives cited reduced reimbursement rates, rising labor and supply costs, and operational realignment needs as primary drivers of 2026 workforce reductions.

University of Vermont Health workforce restructuring

▪University of Vermont Health created 55 new roles alongside eliminating 199 positions across its hospital, home health, hospice, and skilled nursing services.
▪University of Vermont Health initiated a net workforce reduction of 144 roles to save $16.8 million against a projected $300 million revenue reduction over several years.

MultiCare health system clinic closures

▪MultiCare Health System in Tacoma, Washington announced approximately 138 position eliminations due to rising labor, supply, and pharmaceutical costs along with federal policy changes.
▪MultiCare Health System closed multiple clinics in Spokane, Washington, accounting for 83 of its position eliminations, with remaining cuts targeting leadership and support roles.

Montrose Regional Health organizational restructuring

▪Montrose Regional Health in Colorado eliminated 77 positions effective October 12, 2026, affecting 12 leadership roles, three physicians, and three advanced practice providers.
▪Montrose Regional Health structured its workforce reduction to include 34 active layoffs and 43 unfilled vacant positions, citing flat insurer payments alongside rising operating costs.

Brown University Health buyout program

▪Brown University Health limited its voluntary separation buyout offers to supervisors, managers, and directors aged 60 or older who had at least five years of service.
▪Brown University Health in Providence, Rhode Island eliminated or consolidated 10 senior leadership positions and offered voluntary separation buyouts to roughly 200 eligible managers and directors.

John Muir Health workforce cuts

▪John Muir Health in Walnut Creek, California announced 75 layoffs in October 2026, primarily affecting leadership positions and administrative services roles without direct patient care duties.
▪John Muir Health reduced its overall workforce by approximately 1% through its planned leadership and administrative layoffs.

Kaiser Permanente administrative layoffs

▪Kaiser Permanente scheduled layoffs for 147 administrative and business employees across 16 California locations effective November 20, 2026, with no direct impact on patient care.
▪Kaiser Permanente concentrated its largest staff reductions at its administrative offices in San Diego, Pleasanton, and Pasadena, California.

Health First program and staffing reductions

▪Health First reduced its total workforce across its four-hospital system by approximately 2% while eliminating clinical roles alongside administrative and management positions.
▪Health First in Rockledge, Florida eliminated 214 administrative, management, and clerical roles while ending its hospital-at-home program in September 2026.

Wellstar health system corporate restructuring

▪Wellstar Health System's elimination of 761 positions represented approximately 2% of its overall workforce and included administrative roles within Wellstar Medical Group.
▪Wellstar Health System in Marietta, Georgia eliminated 761 corporate, shared services, and administrative positions in July 2026 to streamline leadership structure.

Health systems eliminate and outsource technology roles

▪Stanford Health Care in Palo Alto, California announced 95 administrative and technology layoffs, including roughly 80 positions in digital services and technology departments.
▪Trinity Health in Livonia, Michigan transferred IT service desk and applications support to external partners, affecting 557 internal technology roles.
▪MaineHealth in Portland, Maine eliminated 56 IT positions and consolidated three analytics teams into one, resulting in 83 total position eliminations.

Adventist Health function centralization

▪Adventist Health offered alternative roles within the organization to 109 of the 132 employees affected by its administrative centralization.
▪Adventist Health laid off 132 employees in July 2026 while centralizing quality, risk management, infection prevention, and accreditation functions across California facilities.

City of Hope support standardization

▪City of Hope announced its Irwindale layoffs as part of efforts to standardize support functions following its expansion into a national cancer system.
▪City of Hope scheduled 73 layoffs at its Irwindale, California facility effective November 24, 2026, focusing on business support and operations roles.

Cheshire Medical Center financial turnaround

▪Cheshire Medical Center in Keene, New Hampshire eliminated 12 positions and slated its 20-bed inpatient rehabilitation unit for closure by October 30, 2026.
▪Cheshire Medical Center attributed its workforce reductions to substantial financial losses, high contract labor costs, loss of 340B eligibility, and its payer mix.

Northwell Health workforce reductions

▪Northwell Health previously eliminated staff positions in November 2025 and cut its information technology workforce in February 2026.
▪Northwell Health in New Hyde Park, New York initiated workforce cuts in October 2026, representing its third round of layoffs in under a year.

UC Health facility closure

▪UC Health scheduled the permanent closure of its Bridgeway Pointe assisted living facility in Cincinnati for October 31, 2026, eliminating 49 positions.
▪UC Health included 24 state-tested nursing assistant and 20 licensed practical nurse positions among the job eliminations at its Bridgeway Pointe facility.