UVM Health cuts 76 jobs and restructures 66 more positions amid pressure to reduce costs
The University of Vermont Health Network says it will eliminate about 76 positions and require 66 employees to reapply for restructured jobs as it seeks to reduce expenses.
The University of Vermont Health Network announced June 9 that it will eliminate about 76 positions systemwide and require 66 additional employees to reapply for restructured jobs, part of an effort to reduce expenses as the hospital network faces mounting financial pressure.
UVM Health said the changes are expected to save about $9.5 million annually. Most of the affected jobs are administrative, but some involve direct patient care or support for patient-facing services.
The announcement affects workers across a health system that operates three Vermont hospitals, three hospitals in upstate New York, outpatient clinics, and home-health and hospice services. The network employs about 15,000 people.
What is changing
The 76 eliminated positions represent layoffs. The 66 other employees are not automatically losing their jobs, but must reapply for positions that have been restructured.
The exact number of patient-facing jobs among the affected positions was not specified. The changes therefore reach beyond back-office functions, although the majority of the positions are administrative.
UVM Health has conducted layoffs before. The network also reduced executive positions after earlier cuts the prior summer. The latest restructuring adds to those efforts as leaders seek to lower operating costs.
The cuts affect employees throughout the network, while the possible effect on appointment availability, staffing levels and clinical outcomes is not yet clear. The announcement does not establish that patient care has been disrupted or that any hospital or service is closing.
Financial pressure on the network
The University of Vermont Medical Center’s Burlington flagship hospital was reported to be losing about $460,000 per day during testimony in April 2026. That figure illustrates the scale of the financial challenge facing the system, although the daily loss is separate from the savings projected from the June job changes.
Consultants have recommended that the network cut $300 million in expenses over three years. That is a recommendation, not a completed reduction. The $9.5 million in annual savings associated with the latest personnel changes would cover only part of that proposed total.
The network is also dealing with reimbursement pressure. Its latest contract with Blue Cross Blue Shield of Vermont included significantly lower reimbursement rates, reducing the amount the insurer pays for covered care compared with the prior agreement.
Hospitals and other providers also face uncertainty over possible Medicaid reductions. For UVM Health, that creates additional pressure to reduce expenses while continuing to operate hospitals, outpatient services, and home-health and hospice programs.
Why the cuts matter in Vermont
UVM Health is Vermont’s largest healthcare provider, and its workforce and services extend across much of the state. Changes involving administrative staff can affect how a large system operates, while reductions involving patient-facing or patient-support positions may be closely watched by patients and employees.
At this stage, the network has announced the positions being eliminated or restructured and the estimated savings, but not a final account of how the changes will affect staffing ratios, appointment capacity or clinical outcomes.
The June 9 announcement comes as UVM Health works through earlier layoffs, lower reimbursement rates and losses at its Burlington flagship hospital. The broader cost-reduction effort will continue beyond these positions, with consultants’ recommended $300 million in reductions setting a much larger financial target for the network.
Sources
- Widespread layoffs underway at UVM Health, Vermont Public
