Ten health systems are making targeted workforce reductions affecting IT and coding roles as organizations look to streamline operations and manage costs.
Here are the health systems and hospitals making these cuts in 2026, as reported by Becker’s:
September:
Palo Alto, Calif.-based Stanford Health Care is laying off 95 employees, with about 80 of the cuts hitting its technology and digital services department, according to a Sept. 1 statement shared with Becker’s. Affected roles include senior manager of information technology, director of clinical applications and IT program manager, per an Aug. 28 WARN notice. Affected employees remain on payroll with benefits through Nov. 2, and the system said the cuts do not affect direct patient care.
Livonia, Mich.-based Trinity Health’s outsourcing of IT service desk and applications support will affect 557 positions across 120 job titles, according to a Sept. 3 WARN notice. The work is expected to transition to an outside technology partner by the end of 2026, with affected employees offered transition support and opportunities to apply for other roles at Trinity Health or with the partner. The health system said the changes are limited to internal IT support and were driven primarily by a need for specialized technology expertise.
July:
Marietta, Ga.-based Wellstar Health System cut 761 jobs, about 2% of its more than 35,000-person workforce, hitting corporate, shared-services and some administrative roles within Wellstar Medical Group. Front-line care roles were not affected.
Vancouver, Wash.-based PeaceHealth will move several IT support functions to Tech Mahindra and its U.S. subsidiary, The HCI Group, starting in November. Some IT roles will leave PeaceHealth once the transition is complete, though the system hasn’t finalized how many employees will be affected; none of the roles are in revenue cycle.
Portland, Maine-based MaineHealth eliminated 56 IT positions and consolidated three analytics teams into one, a net reduction of 27 roles, for a total of 83 eliminated positions. The health system, which operates nine hospitals and employs about 24,000 people, attributed the redesign to shifting federal healthcare policy, reimbursement changes and advancing technology.
June:
Pittsburgh-based UPMC let go of approximately 200 employees and eliminated 300 vacant positions, primarily in nonclinical and non-member-facing roles, a spokesperson confirmed June 9.
April:
Lewiston, Maine-based Central Maine Healthcare laid off 38 IT workers as a result of implementing an Epic EHR system. According to a hospital spokesperson, the reductions are tied to the retirement of legacy systems and overlapping roles. No patient care positions were affected.
West Des Moines, Iowa-based UnityPoint Health eliminated 207 IT roles as the health system moves some IT and revenue cycle functions to third-party vendors. The changes affect less than 1% of UnityPoint Health’s 31,000-member workforce.
March:
Rochester (N.Y.) Regional Health eliminated coding positions as part of what it described as a “targeted operational change” to align administrative functions across the system. Rochester Regional said the changes follow prior technology and workflow updates designed to reduce duplication while maintaining compliance and access to care.
February:
New Hyde Park, N.Y.-based Northwell Health reduced its IT workforce by less than 4%, according to a system spokesperson. The cuts represent fewer than 0.1% of the organization’s total workforce. Northwell said the move is part of broader efforts to manage resources and pace certain investments amid current economic and policy pressures while continuing to invest in growth areas such as behavioral health and community-based care.
Editor’s note: This article was updated Sept. 14.
