Alameda County Delays Major Layoffs at Alameda Health System

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Alameda Health System, the county's safety net health care system that runs Highland Hospital in Oakland, will defer major layoffs that were slated for March 9 after the Alameda County Board of Supervisors voted to delay the cuts and form a working group to explore alternative solutions to address the hospital system's 'fiscal imbalance'.

Why it matters

Alameda Health System, which gets about 60% of its revenue from Medicaid payments, is projected to lose $100 million in revenue annually by 2030 due to historic reductions in federal Medicaid funding. The planned layoffs would have impacted critical services like outpatient behavioral health programs that serve low-income residents with mental illness.

The details

In December, Alameda Health System announced plans to lay off nearly 250 employees, about 4% of its workforce, due to the federal funding cuts. The layoffs were originally scheduled to take effect on March 9 and would have impacted positions like physical therapists, speech therapists, audiologists, lab assistants and phlebotomists. The county's motion directs officials to work with AHS to explore options like amending behavioral health contract payments, adjusting lines of credit, and discussing service models for intensive outpatient programs.

• Alameda Health System announced the planned layoffs in December 2025.
• The layoffs were originally scheduled to take effect on March 9, 2026.
• The Alameda County Board of Supervisors voted on Tuesday, March 4, 2026 to delay the layoffs and form a working group.

What’s next

The working group formed by the Alameda County Board of Supervisors will meet to consider alternative solutions to address Alameda Health System's fiscal challenges and avoid the planned layoffs.