Oakland safety-net hospital layoffs, mental health program closure plans, and Bay Area measles watch

Oakland, CA – February 27, 2026 – Alameda Health System layoffs and mental health closures draw scrutiny, as Covered CA enrollment ends and measles risk rises.

Safety-net hospital system layoffs: county looks for a pause

Alameda Health System, the East Bay public safety-net network anchored by Wilma Chan Highland Hospital in Oakland, is moving forward with a layoff plan that county leaders say could still be slowed or temporarily suspended. KQED reported that the latest proposal would cut 187 positions, reduced from earlier plans, as the system braces for major Medicaid revenue reductions tied to federal policy changes.

At a Feb. 25 public hearing in downtown Oakland, supervisors and community members weighed in on potential service impacts. Supervisor Nate Miley told KQED the system may need roughly $44 million to $52 million to hold back layoffs for a year, and that county officials were discussing near-term funding to delay cuts while a longer-term plan is developed. Alameda Health System said it expects to run out of funds within about six months, by August 2026, if it does not reduce costs.

Workers rally ahead of Beilenson hearing

Union leaders with SEIU Local 1021 said Alameda Health System workers planned a Feb. 25 demonstration outside the Alameda County Administration Building at 1221 Oak St. in Oakland, describing concerns about staffing, bed availability and patient wait times. The union said the demonstration was organized ahead of the legally required Beilenson hearing process for proposed service reductions.

Mental health outpatient programs face closure

An SF Chronicle commentary highlighted plans to close two intensive outpatient mental health programs serving low-income residents: one at Highland Hospital in Oakland and another at Fairmont Hospital in San Leandro. The piece said the closures are scheduled for March 9 and warned that removing structured outpatient support could increase pressure on emergency departments, inpatient units and other parts of the safety-net system.

Health insurance: Covered California reports end-of-enrollment snapshot

Covered California said Feb. 26 that more than 1.9 million people signed up for or renewed marketplace coverage during the 2026 open-enrollment period. The exchange reported nearly 1.7 million renewals and 235,055 new plan selections, and said state subsidies helped keep renewals steady even as enhanced federal tax credits expired. While the numbers are statewide, they shape plan availability and outreach efforts that Oakland residents rely on each year.

Outbreak watch: measles exposure investigation in the Bay Area

Bay Area health officials are investigating a measles case in a vaccinated Santa Clara County resident diagnosed Feb. 26 after international travel, the SF Chronicle reported. The report said the person visited a Burlingame Panda Express on Feb. 23 and Feb. 24 while contagious, and local health departments were working to notify people who may have been exposed. Alameda County Public Health has previously urged residents to stay up to date on MMR vaccination, especially before travel.

Sources

https://www.kqed.org/news/12074462/alameda-county-officials-look-to-stave-off-mass-hospital-layoffs-as-medicaid-cuts-loom

https://www.seiu1021.org/article/long-wait-times-and-hospital-patients-gurneys-because-there-are-no-beds

https://www.sfchronicle.com/opinion/openforum/article/mental-health-treatment-alameda-21338670.php

https://www.coveredca.com/newsroom/news-releases/2026/02/26/as-enhanced-federal-subsidies-expire-covered-california-ends-open-enrollment-with-state-subsidies-keeping-renewals-steady-for-now-and-new-signups-down/

https://www.sfchronicle.com/bayarea/article/measles-case-santa-clara-county-21945497.php