Oakland, Calif.-based Alameda Health System will lay off 296 employees as it deals with funding cuts related to H.R. 1.
Affected workers will be notified on Jan. 6, and are employed across all system departments and disciplines, including administrative services, clinical care, management and support roles, according to a statement from the system shared with Becker’s.
Alameda Health System is projected to lose more than $100 million annually by 2030 as a result of the legislation, also known as the One Big Beautiful Bill Act, which will also tighten Medicaid eligibility and cut multiple key safety-net funding streams, the statement said.
Medicaid, which is known as Medi-Cal in California, makes up about 60% of AHS’ payer mix. Added financial pressure could come from scheduled Medicaid Disproportionate Share Hospital program cuts beginning in February 2026, which could reduce AHS funding by as much as $60 million annually. The system could also see more cuts from the state.
“Due to these significant external cuts in funding, AHS must take a proactive approach to decreasing its organizational expenses, including labor expense,” the statement said. “AHS has implemented a Voluntary Resignation with Severance Program and an Incentivized Retirement Program for employees who wish to voluntarily separate from AHS.”
Affected employees will be offered job search assistance and resume writing guidance. Unionized employees will receive severance packages.
“AHS leadership continues to pursue multiple strategies to restore funding and strengthen sustainability,” the statement said. “We are working in partnership with federal, state and county leaders to hopefully mitigate these adverse conditions. In addition, we have met with our labor leaders and hope to work in partnership to help us work through this very difficult time.”
