New York City Health and Hospitals Layoffs Target Managerial Posts

Medical costs or insurance fund concept

NYC Health + Hospitals Cuts 476 Manager-Level Jobs

The largest public healthcare system in America, the New York City Health and Hospitals Corporation, alternatively called NYC Health + Hospitals, has announced job cuts for 476 managerial positions.

NYC Health + Hospitals, which operates a network of public hospitals and clinics across New York City, has laid off 396 managers from its staff, and has also cut 80 unfilled positions. The New York City-run hospital system made the tough decision in an effort to cut costs. The organization expects to save as much as $60.0 million from this move by the next fiscal year of 2018.

The job cuts were announced after the hospital system reported a loss of $673.0 million for its third quarter of 2017, which is nearly double the loss it faced in the same three-month period a year ago. The savings from job cuts are expected to fill the budget gap of $779.0 million that the system is currently facing.

The hospital system had announced earlier this year that it will be following a new management restructuring plan. The latest job cuts will cut down unnecessary layers in the managerial hierarchy, trimming down its six tiers to four tiers.


However, the CEO has reaffirmed that the layoffs will not affect patient care or quality of service at the hospitals. The corporation currently runs a network of 11 hospitals across New York City, as well as seven long-term care community centers.

NYC Health + Hospitals Revenue Declines Due to ACA

NYC Health + Hospitals has been facing declining revenue after the Barack Obama administration changed the criteria for insurance reimbursements under the Affordable Care Act (ACA), also popularly called Obamacare. Since then, many hospitals across America have been struggling to keep their businesses afloat.

The NYC hospital system stands to face more losses, which will likely lead to more layoffs in the coming year. This is because the budget cuts on Medicaid proposed under Trump’s American Health Care Act (AHCA) are expected to further hurt hospitals across the country. The AHCA is expected to wipe away millions of dollars in insurance reimbursements from Medicaid, thus reducing the revenue that hospitals earn.

NYC Health + Hospitals has many patients in the system who are currently dependent on Medicaid and covered under the ACA, which is being repealed and replaced by the AHCA.


NYC Health + Hospitals cuts 476 positions amid financial pressure,” Healthcare Dive, June 2, 2017.)

Ibid. and “NYC H+H reports $673M quarterly loss,” Healthcare Dive, June 2, 2017.