Brown University Health Cuts Jobs Citing Medicaid-Driven Cost Pressures
Brown University Health, Rhode Island's largest hospital system, announced buyouts for up to 200 non-clinical supervisors and layoffs of an unspecified number of executives, effective the start of its new fiscal year. CEO John Fernandez cited rising pharmaceutical, labor and supply costs alongside growing uncompensated care, insurer denials and bad debt. The system attributes much of the pressure to federal policy changes restricting Medicaid eligibility and ending exchange subsidies, projecting $346 million in charity care, denials and debt costs for fiscal 2027, $71 million more than the prior year, and a $64 million deficit. Despite the cuts, the system plans $210 million in capital facility upgrades and a January merit increase, and will end employee health plan coverage of GLP-1 drugs for weight loss starting Jan. 1.
Hospital systems facing rising uncompensated care from Medicaid eligibility restrictions may increasingly turn to layoffs and service consolidation, signaling fiscal strain that could affect provider network adequacy for Medicaid managed care plans.
Finance · Managed Care
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