UVM Health Restructures, Eliminating 146 Positions

UVM Health Network Eliminates 146 Roles Amidst Financial Strain

The University of Vermont Health Network has initiated significant workforce adjustments, eliminating 146 vacant and full-time positions and pausing performance-based pay for leaders for the fiscal year concluding in September. This move is part of a broader strategy to address financial challenges and enhance operational efficiency within the health system.

Out of the 146 eliminated roles, 77 were unfilled. The remaining 68 positions impacted staff members,while nine affected leaders. the majority of these staff reductions occurred within UVM Health’s shared services teams, encompassing departments such as finance, registration, communications, IT, and human resources. These actions, implemented on July 29, aim to streamline operations and reduce budgetary pressures.

UVM Health Network emphasized that the selection of positions for elimination was the result of a thorough, collaborative process involving healthcare leaders and partners across administrative, clinical, and operational areas. The primary objective was to identify cost-saving measures with minimal impact on direct patient care. The health system is providing support to affected staff, including opportunities to explore other open positions within UVM Health.

This latest round of job cuts follows previous cost-reduction initiatives. In November, UVM Health announced plans to cut services and up to 200 jobs in response to budget directives from the Green Mountain Care Board. Earlier in 2024, the network also eliminated 130 open positions to manage costs.

Sunny Eappen, MD, President and CEO of UVM Health Network, stated, “Today’s actions are an crucial step toward our affordability goals, but we have more work to do. To get there, we’re taking a hard look now and in the future at the costs we can control and focus on being more efficient to reduce the cost burden on patients, while continuing to support our dedicated workforce.”

Concerns are also being raised about the potential impact of the recently enacted One Big Stunning Bill act, wich includes substantial cuts to Medicaid.This legislation could affect healthcare coverage for approximately 45,000 Vermonters and 1.5 million New yorkers over the next decade. UVM Health anticipates that these funding reductions, though their full impact may not be immediate, will adversely affect public health and exacerbate existing pressures on the healthcare delivery system nationwide.

The health system acknowledged that these measures represent an early phase of its cost-reduction efforts and that further actions will be necessary for improved effectiveness and efficiency. UVM Health is actively collaborating with a team comprising organizational representatives, the Green Mountain Care Board, and an independent liaison to pinpoint additional areas for enhancement and value creation.

What specific support roles were eliminated at the University of Vermont Medical Center (UVMMC)?

Impact of the UVM Health Network Restructuring

On July 29, 2025, UVM Health announced a meaningful restructuring plan resulting in the elimination of 146 positions across its network.This move, impacting hospitals and clinics in Vermont and northern New York, is a response to ongoing financial pressures and evolving healthcare demands. The restructuring aims to streamline operations and ensure the long-term sustainability of the healthcare system. key areas affected include administrative roles, support staff, and some clinical positions. This news follows a trend of hospital layoffs and healthcare restructuring seen nationally.

Breakdown of Position Cuts by Location

The 146 positions are being eliminated across several UVM Health facilities. While a complete, detailed breakdown is still emerging, initial reports indicate the following:

university of Vermont Medical Center (UVMMC) – Burlington, VT: Approximately 65 positions affected, primarily in administrative and support roles.

Central Vermont Medical Center (CVMC) – Berlin,VT: Roughly 30 positions eliminated,impacting both clinical and non-clinical staff.

Chalice Health – Colchester, VT: Around 20 positions cut, focusing on streamlining administrative functions.

Northern New York Hospitals – Various Locations: The remaining 31 positions are distributed across UVM health’s New York facilities, including Alice Hyde Hospital and Champlain valley Physicians Hospital.

UVM Health Services – System-Wide: Some positions are being consolidated at the system level, leading to redundancies.

These cuts represent approximately 3% of the UVM Health workforce. The institution emphasizes that patient care roles are being prioritized, but some clinical positions are still impacted.

Financial Challenges Driving the Restructuring

UVM Health, like many healthcare systems, is facing substantial financial headwinds. several factors contribute to this situation:

Rising Labor Costs: Nurse staffing shortages and competitive wages are significantly increasing labor expenses.

Inflation & Supply Chain Issues: The cost of medical supplies, pharmaceuticals, and equipment has risen sharply, impacting the bottom line.

Decreased Patient Volume: While demand for healthcare remains high, certain services have experienced fluctuations in patient volume.

Reimbursement Rates: changes in insurance reimbursement rates and government funding create financial uncertainty.

Investment in Electronic Health Records (EHR): The ongoing costs associated with maintaining and upgrading EHR systems are substantial.

UVM Health officials state that these financial pressures necessitate difficult decisions to ensure the organization’s financial viability. The restructuring is projected to save approximately $30 million annually.

Impact on Remaining Staff & patient Care

The elimination of 146 positions will undoubtedly place additional strain on remaining staff. UVM Health has stated its commitment to minimizing disruption to patient care. Strategies to mitigate the impact include:

Workflow optimization: re-evaluating and streamlining workflows to improve efficiency.

Technology Implementation: Leveraging technology to automate tasks and reduce administrative burden.

Cross-Training: Providing opportunities for staff to develop skills in multiple areas.

Temporary Staffing: Utilizing temporary staffing agencies to fill critical gaps.

Though, concerns remain about potential increases in workload and the impact on staff morale. monitoring patient satisfaction scores and employee burnout rates will be crucial in the coming months.

Support for affected Employees

UVM Health is offering a severance package to affected employees, including:

Severance Pay: Based on years of service.

Benefits Continuation: Continued health insurance coverage for a specified period.

Outplacement services: Assistance with resume writing,job searching,and career counseling.

Employee Assistance Program (EAP): Access to mental health and wellness resources.

The organization is also working with local workforce progress agencies to connect displaced employees with new job opportunities. Resources for job search assistance and career transition are available on the UVM Health website.

Future Outlook for UVM Health

The restructuring is part of a broader strategic plan to transform UVM Health into a more enduring and resilient organization.Future initiatives may include:

expansion of Telehealth Services: Increasing access to care through virtual appointments.

Partnerships & Collaborations: Exploring opportunities to partner with other healthcare providers.

Focus on Preventative Care: investing in programs that promote wellness and prevent chronic diseases.

Cost Reduction Initiatives: Identifying and implementing additional cost-saving measures.

The success of these initiatives will depend on the organization’s ability to adapt to the changing healthcare landscape and maintain the trust of its patients and communities. Ongoing monitoring of healthcare financial performance and market trends will be essential.