Oakland, Calif.-based Alameda Health System has rescinded its planned layoffs after the Alameda County Board of Supervisors approved up to $19.3 million in one-time funding to the system.
The move eliminates the proposed July 6 reduction of 92 full-time employees from Alameda Health, extends the system’s Intensive Outpatient and Partial Hospitalization Programs through Oct. 31 and funds an independent performance audit, according to a June 22 Board of Supervisors letter from the county.
“While this funding provides important short-term stability for our workforce and patients, Alameda Health System continues to face long-term fiscal pressures driven by federal and state funding changes, and we remain committed to working with our County and labor partners to identify sustainable solutions that protect access to care for the communities we serve,” the health system said in a July 13 statement shared with Becker’s.
AHS faces a $100 million deficit for its fiscal 2026-2027 budget, the letter said.
The health system’s board approved the reduction of 372 employees Nov. 19 in anticipation of HR 1 cuts, but the number was reduced to 187 in February. The existing layoff list included 120 FTEs, which was partly due to early retirements, vacant positions and voluntary separations, the letter said.
“Of the 120 [layoffs] remaining for fiscal year 2026-27, there are 28 positions in the PHP/IOP program,” the letter said. “If those 28 positions are removed from the list, there are 92 RIFs remaining. This Board action would eliminate all 92 of those positions.”
Under the new plan, the county’s health director will begin a planning group with Alameda Health’s leadership and stakeholders to determine by Sept. 30 whether the system’s behavioral health program can continue. The group will then create a patient transition plan and explore county employment options for the program’s 28 employees.
AHS operates four hospitals and nine clinics, with more than 90% of its patients on some form of subsidized care, the letter said.
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