"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."
"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, speech therapy and behavioral health outpatient services. "The board must rescind layoffs immediately," said Craig Metz, a psychotherapist working in behavioral health. "The services we provide can't be found anywhere else in the county.""
Alameda Health System plans to lay off approximately 270 workers across its county hospital network to balance its budget. Notices of paid leave were issued and then retracted for many employees. The layoffs are projected to save about $30–40 million in 2026. The cuts follow a large Medicaid reduction in the federal budget that disproportionately impacts AHS because roughly 60% of its patients rely on Medicaid or Medi-Cal. Budget projections showed deficits of $91.7 million this year, $88.5 million in 2027, and $210.6 million in 2028 before layoffs. Employees warn service gaps and personal hardship will result.
Read at The Mercury News
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