Jackson said the AHS trustees, the board that directly governs the hospital system, will meet today to further discuss delaying the layoffs and the plan to find savings.
Federal health care cuts to blame
The Alameda Health System is facing a massive drop in revenues because of H.R. 1, the “Big Beautiful Bill” passed by the Republican-controlled Congress last year.
That bill massively reduced funding for Medicaid, the insurance program that public hospitals like AHS heavily rely on. It imposed other cuts and requirements that amount to an unprecedented $1 trillion reduction in health care spending nationwide by the federal government.
“We should all keep in mind that the reason we’re all here is largely, exclusively because of H.R. 1,” Supervisor David Haubert said yesterday.
Anticipating a $30 million drop in revenue this year and a $100 million budget hole in 2027, AHS leaders confirmed in December that they were looking at eliminating as many as 372 positions, including nurses, therapists, doctors, housekeeping staff, and other roles.
In January, AHS published a plan scaling back the layoffs to about 188 positions. Hospital staff said at the time that even this level of cuts would significantly harm their ability to care for patients.
Exploring options to avoid staff reductions
On Feb. 25, the Alameda County Board of Supervisors signaled they were willing to work with AHS on solutions.
At yesterday’s meeting, the supervisors unanimously voted to identify alternative, non-patient-facing positions that could be cut to address the system’s budget shortfall.
The Wilma Chan Highland Hospital Campus is seen through flowering branches in Oakland on Feb. 24, 2026. The hospital is part of Alameda Health System. (Gustavo Hernandez/KQED)
Under the new plan, which wasn’t described in much detail, the county, county auditor, and AHS will examine behavioral health contract payments that could be reduced.
Currently, the county and AHS have dozens of contracts with nonprofits to provide behavioral health services. They also want to scrutinize AHS’s finances and potentially make adjustments to how AHS can borrow money from the county.
And county leaders said they will look into alternative service models with respect to the system’s intensive outpatient program, all with an eye toward saving money and avoiding staff layoffs. The supervisors will hold another meeting on March 17 to report back.