The University of Vermont Health Network eliminated 142 positions across its Vermont and New York facilities this week, citing ongoing financial pressure and the need for long-term sustainability. According to spokesperson Annie Mackin, the layoffs include 76 staff members and the reassignment of 66 others, with an estimated $9 million in annual savings projected for the regional health system.
Why is UVM Health cutting staff now?
The health network is responding to significant operational deficits, including a reported loss of $460,000 per day at the UVM Medical Center in Burlington during the first part of this year, according to CEO Dr. Steve Leffler. These cuts follow a May 1 report from an independent liaison that recommended the system reduce annual spending by $100 million over the next three years. The organization is preparing for projected revenue declines from both Medicaid and commercial insurers, necessitating what Dr. Leffler described in a press release as “hard choices” to maintain accessible care.
UVM Health is one of the largest employers in the state of Vermont. Its network encompasses three hospitals in Vermont, three in New York, and a widespread home health and hospice group.
How do these cuts affect patient care?
While the network emphasizes that these measures aim to reduce administrative redundancy, labor representatives have raised concerns about the impact on frontline services. Emma Galvin, an organizer for AFT Vermont, stated that approximately one-third of the impacted positions at UVM Medical Center are unionized roles, including laboratory technicians and patient support specialists. Additionally, four full-time nursing positions were eliminated at Porter Medical Center in Middlebury—three in primary care and one in obstetrics and gynecology.
How does this compare to previous years?
This week’s layoffs represent the latest in a series of cost-cutting measures within the UVM Health system. Last summer, the network eliminated 146 administrative roles. By October, the organization underwent a broader leadership restructuring that included the departure of several high-level executives. These successive rounds of workforce reductions reflect a consistent trend of administrative tightening that began following a contentious budget review process with state healthcare regulators.
Recent Workforce Changes at UVM Health
| Timeframe | Action |
|---|---|
| Summer 2023 | 146 administrative roles cut. |
| October 2023 | Leadership restructuring and executive layoffs. |
| May 2024 | 142 positions impacted (76 layoffs, 66 reassignments). |
Frequently Asked Questions
Are these layoffs limited to Vermont?
No. The layoffs affect the entire UVM Health Network, which includes hospital facilities in both Vermont and New York, as well as the system’s home health and hospice operations.
What is the primary goal of these reductions?
According to UVM Health press relations, the cuts are intended to consolidate responsibilities, reduce redundancy, and lower administrative expenses to address current financial realities.
Will there be further cuts?
While the network has not announced future layoffs, an independent report recommended a $100 million annual spending reduction over the next three years, suggesting continued pressure to streamline operations.
This is a developing story. For more updates on healthcare policy and regional employment trends, subscribe to our weekly newsletter or check back for further reporting.
