The largest health system layoffs in 2026 are being driven by a range of forces. Regulatory penalties, exits from unprofitable insurance markets and outsourcing deals have all played a role in eliminations — from a CMS-driven certification loss that prompted a Texas psychiatric hospital to cut 648 jobs, to Baylor Scott & White Health Plan’s retreat from Medicaid and individual coverage.
Here are the five biggest layoffs of the year so far, ranked by the number of jobs cut, according to Becker’s reporting:
1. Marietta, Ga.-based Wellstar Health System implemented a workforce reduction of 761 roles, effective July 28. The cuts affect about 2% of its more than 35,000-employee workforce, including corporate and shared services functions, as well as certain administrative roles within Wellstar Medical Group.
“These changes will help us simplify our structure, clarify roles, strengthen accountability and move decision-making closer to the people who care for patients, while positioning Wellstar for continued long-term sustainable growth,” a system spokesperson told Becker’s.
The layoffs did not affect front-line care roles.
2. San Antonio-based Laurel Ridge Treatment Center, a 330-bed behavioral health facility owned by King of Prussia, Pa.-based Universal Health Services, laid off 648 employees on June 26. The layoffs came after CMS terminated the facility’s Medicare agreement, effective April 30, after determining it failed to substantially comply with Medicare and Medicaid health and safety participation requirements.
A UHS spokesperson told Becker’s in May that it is deeply disappointed by the termination of its Medicare provider agreement and as a result of the regulatory action it “must implement a workforce reduction.”
UHS CFO Steve Filton said on the system’s July 28 earnings call that the facility is anticipated to receive recertification in 2027 and is operating with a limited census in the meantime.
3. Baylor Scott & White Health Plan, the insurance arm of Dallas-based Baylor Scott & White Health, said it plans to eliminate 321 jobs as it exits the Texas managed care market by the end of August and will no longer offer individual marketplace plans past 2026.
Baylor Scott & White Health CEO Pete McCanna told Becker’s that the system’s model — which emphasizes an array of services delivered 24/7, on demand — is more effective in populations with more stable coverage, such as Medicare Advantage and direct-to-employer plans. He also pointed to the state’s Medicaid procurement process, noting Baylor Scott & White was not selected in certain regions.
The health plan will continue to offer employer group and Medicare Advantage plans, while the health system will continue to accept Medicaid and ACA plans from other insurers. Affected employees will have priority access to other roles within the organization.
4. Leominster, Mass.-based UMass Memorial Health-Community Healthlink plans to layoff 231 positions, effective Sept. 16, as it plans to permanently close all its programs and cease operations as an agency.
The closure will be phased as the nonprofit behavioral health provider affiliated with Worcester, Mass.-based UMass Memorial Health works to transition its services to other community providers.
UMass Memorial Health-Community Healthlink initially shared plans in May to lay off 78 employees, citing inconsistent referrals, declining demand and workforce shortages.
UMass Memorial Health is working with affected employees to identify other positions within the system or within other community healthcare partner organizations.
5. West Des Moines, Iowa-based UnityPoint Health said April 15 it is transitioning some IT and revenue cycle functions to third-party vendors, including eliminating 207 IT roles.
The changes are a part of a broader financial review amid industry pressures, including rising labor, supply and drug costs, reimbursement reductions and increased demand for complex care services, according to the health system.
“Like many health systems across the country, we are navigating a period of sustained financial pressure that requires us to make difficult but necessary decisions,” Scott Kizer, president and CEO of UnityPoint Health, said in the statement. “Our focus is to ensure we remain strong for the future — so we can continue delivering expert, high-quality care and expand local access for the patients and communities who depend on us.”
The changes affect less than 1% of the system’s 31,000-persion workforce.
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