Alameda County hospital system lays off hundreds of employees to counter federal cuts

"A day after many Alameda Health System employees had received notices of paid leave only to have those notices retracted Wednesday morning scores of nurses, therapists and surgeons grilled the AHS Board of Trustees as they prepare to layoff approximately 270 workers across the county hospital network. The notices to hospital workers come as AHS attempts to balance its budget following significant cuts to Medicaid and Medi-Cal in the Trump administration budget bill that has major implications for the county system's rehabilitation,"

"The pending layoffs are expected to save approximately $30-40 million in 2026 to balance the public health system's budget after Congress approved a $1 trillion cut to Medicaid the largest in the health subsidy program's history in President Donald Trump's budget bill. AHS is particularly vulnerable to cuts to Medicaid and Medi-Cal, the state's supplementary health insurance provider, as approximately 60% of AHS patients utilize the programs."

"According to budget projections from November, AHS had estimated a $91.7 million deficit this year, a $88.5 million deficit in 2027 and a $210.6 million deficit in 2028 before layoffs. Health care workers like AHS dietician Reilly Gardine said they were worried about what they and their partner will do if given a pink slip. If Gardine loses their health insurance, they and their partner will have to apply to Medicaid the same insurance that the majority of their patients have."

Alameda Health System plans to lay off approximately 270 workers across the county hospital network after many employees received then had paid-leave notices retracted. Nurses, therapists and surgeons confronted the Board of Trustees and questioned the necessity of cuts. The layoffs aim to save roughly $30–40 million in 2026 to balance the budget after major federal Medicaid and Medi-Cal reductions. About 60% of AHS patients rely on Medicaid/Medi-Cal, increasing system vulnerability. November projections showed deficits of $91.7 million (this year), $88.5 million (2027) and $210.6 million (2028). Staff warned cuts will harm rehabilitation, speech and behavioral outpatient services and worsen access and workloads.

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