Hospitals and health systems cutting jobs in 2026

Hospitals and health systems are continuing to reduce staff in 2026 as they face financial strain tied to lower reimbursement, higher labor and supply costs, and efforts to realign operations. In many cases, leaders say the changes are intended to stabilize finances and support long-term sustainability. This roundup lists job eliminations announced during the year. The page was created Jan. 23 and is being updated continually.

On July 1, Fayetteville, N.C.-based Cape Fear Valley Health said it is eliminating about 200 positions, including 138 that are currently filled. The system said declining federal reimbursements and rising care-delivery costs are driving the cuts. It also said affected employees will be supported through priority placement in other roles and separation packages for eligible workers. Cape Fear employs more than 9,000 people.

Also on July 1, Roseville, Calif.-based Adventist Health laid off 132 employees as it centralized quality, risk management, infection prevention and accreditation functions across its California operations. The health system said 109 of the affected workers had already been offered other roles within the organization. West Suburban Medical Center in Oak Park, Ill., also shared plans to permanently lay off furloughed employees effective Aug. 31 after closing in June. The hospital had previously furloughed about 670 employees when it paused operations in March, but it did not disclose how many would be affected by the permanent layoffs.

On June 4, Springfield, Mass.-based Baystate Health laid off an undisclosed number of employees as part of an effort to reduce administrative layers and address a $60 million budget shortfall. The health system said it continues to recruit front-line clinical staff. Columbia, Mo.-based MU Health Care reduced its workforce by 74 employees as part of an organizational redesign aimed at strengthening long-term financial sustainability. The cuts were mainly in nonclinical and administrative areas, and the system will also close its four Hy-Vee Quick Care clinics Aug. 1.

Springfield, Mo.-based CoxHealth is eliminating 53 revenue cycle roles. The cuts affect about 0.38% of the health system’s workforce, and many impacted employees will transition to new positions within CoxHealth. Amarillo, Texas-based BSA Health System laid off 29 employees, about 1% of its local workforce, with the cuts mainly affecting administrative and support roles. Albuquerque, N.M.-based Lovelace Health System said it plans to eliminate 43 positions, or about 1.6% of its local workforce. Those cuts are primarily in administrative and support roles and come as Lovelace faces rising costs and shifting payer dynamics.

Pittsburgh-based UPMC said it plans to lay off approximately 200 employees and eliminate another 300 vacant positions. The reductions mostly affect workers who are not in clinical or member-facing roles. Burlington-based University of Vermont Health eliminated 76 positions and restructured 66 others as it works to address a projected financial gap of more than $300 million over the next three years. Most of those reductions affect non-patient-facing roles, although some clinical positions were also impacted.

Albuquerque, N.M.-based Presbyterian Healthcare Services said it plans to lay off about 150 employees as it exits most Medicare Advantage plans in 2027. The cuts affect health plan and administrative positions only. Little Rock, Ark.-based Baptist Health said it plans to eliminate about 70 positions in the Fort Smith area. The 11-hospital system said the cuts are being driven by sustained declines in service volumes and duplication of certain roles. Lynchburg, Va.-based Centra Health said it plans to lay off about 90 employees as part of a restructuring effort. That reduction affects about 1% of the regional nonprofit health system’s workforce and is focused mainly on administrative and management areas.

In May, Providence, R.I.-based Care New England laid off more than 30 leadership and nonclinical roles systemwide because of restructuring and financial pressures. The health system employs more than 8,000 people, according to its website. Philadelphia-based St. Christopher’s Hospital for Children laid off 30 employees May 19, representing less than 2% of its 1,868-person workforce. Those layoffs affected both clinical and administrative roles.

Renton, Wash.-based Providence is updating the care model for behavioral health services at Providence Sacred Heart Medical Center in Spokane, Wash., a change that will affect about 40 positions. The changes are scheduled to take effect July 14. San Antonio-based Laurel Ridge Treatment Center, a 330-bed behavioral health facility owned by King of Prussia, Pa.-based Universal Health Services, plans to lay off approximately 648 employees. The layoffs are expected to take effect June 26, weeks after CMS terminated the facility’s Medicare provider agreement April 30.

Medford, Ore.-based Asante is planning job cuts as it reports operating losses and warns of a possible $50 million budget shortfall by 2027. The system expects to eliminate 300 or more roles in the coming months, about 5% to 6% of its workforce. Most of those cuts are expected to be in nonclinical areas, though some clinical positions may also be affected. Leominster, Mass.-based UMass Memorial Health-Community Healthlink, a nonprofit behavioral health provider affiliated with Worcester, Mass.-based UMass Memorial Health, said it plans to lay off 78 employees effective June 30. The organization cited workforce shortages, inconsistent referrals and declining demand as drivers of financial and operational strain.

Nashville, Tenn.-based HCA Healthcare laid off a “small portion” of its workforce, according to a May 4 statement shared with Becker’s. The cuts affected employees in non-direct patient care roles, while the for-profit hospital operator said it continues hiring for clinical and other positions that support patient care.

On April 21, Little Rock, Ark.-based Baptist Health said it would restructure its Fort Smith campus over the next 60 days and discontinue several inpatient services, President and CEO Troy Well said April 29. The transition affects approximately 150 employees, including 10 physicians. The system said it is working with affected employees and offering 60 days of paid severance, career transition support and opportunities for reassignment within the system.

Burlington, Vt.-based University of Vermont Health eliminated nine roles April 14 at Alice Hyde Medical Center in Malone, N.Y., and Champlain Valley Physicians Hospital in Plattsburgh, N.Y. Two employees were affected at Alice Hyde and seven at Champlain Valley Physicians Hospital. The system said the move comes as it navigates rising costs and policy changes while maintaining access to care in rural communities.

Portland, Ore.-based Oregon Health & Science University laid off 59 employees at its Knight Cancer Institute across multiple research projects. The layoffs affected 30 employees at the Cancer Early Detection Advanced Research Center and 12 at the Serial Measurements of Molecular and Architectural Responses to Therapy project. Another 17 positions were eliminated in other areas because of a lack of independent research funding.

Greenwood, Miss.-based Leflore Hospital filed for Chapter 9 bankruptcy protection April 15 as it faces a possible closure or acquisition by a larger health system. The filing followed plans to lay off 86 employees, about 17% of its workforce, and eliminate several service lines. Those layoffs include 46 full-time and 40 part-time employees, and a WARN notice said the hospital could close as soon as June 15 if finances are not stabilized.

Advanced Specialty Hospitals of Toledo, Ohio, a long-term acute care hospital, said it plans to close May 1, affecting all 116 employees. The affected roles include a director of nursing, 45 registered nurses, a therapy manager, four pharmacy technicians, a human resources manager, a physical therapist and four speech-language pathologists.

Baylor Scott & White Health Plan, the insurance arm of Dallas-based Baylor Scott & White Health, plans to eliminate 321 jobs as it exits the Texas Medicaid managed care market and phases out individual marketplace plans. Affected employees will have priority access to other roles within the organization. West Des Moines, Iowa-based UnityPoint Health is transitioning some IT and revenue cycle functions to third-party vendors, including the elimination of 207 IT roles. The changes affect less than 1% of UnityPoint Health’s 31,000-member workforce.

In March, Orange, Calif.-based UCI Health laid off about 150 workers, roughly 1% of its workforce, as part of a “strategic restructuring” amid broad financial pressures. The health system later reversed layoffs for seven quality improvement specialists. The affected roles included administrative, support and operational functions across the organization.

Magnolia, Ark.-based Regional Medical Center also laid off staff as part of a broader restructuring effort, citing rising costs and reimbursement pressures. The reduction in force occurred March 3 and affected about 20 employees, mostly in clinical roles such as licensed practical nurses, according to Karen Weido, senior director of marketing, medical staff services and plant operations. Executives were not affected.

Rochester, N.Y.-based Regional Health said it is making a “targeted operational change” to reduce duplication while maintaining consistency, compliance and access to care. The move includes layoffs affecting coding staff, according to SEIU United Health Workers East. Oakland, Calif.-based Alameda Health System delayed planned layoffs affecting 187 full-time employees, equal to 211 individual positions, after the source text was cut off and further details were not reported.