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UNM Hospital Cuts 53 Executive Positions to Brace for Funding Changes, Financial Pressures

Analysis  |  By Jay Asser  
   April 29, 2025

The academic medical center is the latest health system to eliminate nonclinical jobs in pursuit of efficiency.

The University of New Mexico (UNM) Hospital has restructured its workforce at the leadership level as it contends with financial challenges.

Potential federal funding cuts influenced the academic medical center to drop 53 executive positions, according to a spokesperson for UNM Hospital. Health systems everywhere are taking action in anticipation of the Trump administration reducing spending on medical research funding and Medicaid.

An internal email provided to the Albuquerque Journal revealed that elimination of roles at UNM Hospital include the president, CFO, and chief human resources officer of Sandoval Regional Medical Center in Rio Rancho.

"In order to be sure we are operating as efficiently as possible, and are as prepared as possible for federal funding changes which may lie ahead, we have implemented a number of financial improvement initiatives," the spokesperson said in a statement.

In addition to the job cuts, UNM Hospital is undertaking other cost saving initiatives, such as reviewing expenses on contract labor and assessing workflows to improve efficiency.

"By taking these steps now, UNM Hospital is positioning itself to balance its current and future budgets. UNM Hospital remains committed to what is most important — providing health care for New Mexicans, in New Mexico," the spokesperson said.

Growing trend

Several health systems have taken similar approaches to streamlining their workforce in an effort to curb spending and get ahead of funding cuts.

Mass General Brigham announced in February that it would conduct the largest layoffs in its history by slashing hundreds of nonclinical workers to bridge a budget gap of $250 million over the next two years.

One month later, Yale New Haven Health said it would restructure its management and administration teams, with up to 38 people potentially being laid off.

Providence, meanwhile, recently implemented a freeze on nonclinical hires as CEO Erik Wexler cited financial strain from rising costs and reduced reimbursement.

Though there is unpredictability surrounding the current administration, health systems have little choice but to put themselves in a position where they can weather headwinds.

Jay Asser is the CEO editor for HealthLeaders. 


KEY TAKEAWAYS

UNM Hospital cut 53 executive roles, including top leadership, to address financial pressures and potential federal funding reductions.

Other cost-saving efforts by the health system include a review of contract labor and improvements to workflow.

The move by UNM Hospital reflects a trend of health systems restructuring in anticipation of looming financial adversity.


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