Changes Are Part of Ongoing Work to Improve Affordability and Long-Term Sustainability
Vermont Business Magazine University of Vermont Health today informed employees that 142 positions have been eliminated. Of those, 76 positions have been permanently eliminated, and 66 will be posted as new roles with restructured job descriptions. The majority of these workforce reductions are in areas not providing direct patient care, with targeted clinical changes where necessary.
UVM Health also notified additional employees that the health system is undertaking a reorganization of their positions or departments.
These actions are part of a larger and urgent effort to address significant financial shortfalls, improve sustainability, and ensure long-term access to high-quality health care across the region.
Today’s actions, which are happening systemwide in Vermont and Northern New York, support the following ongoing goals:
- Continue to align services and capacity with patient demand.
- Reduce administrative complexity and duplication.
- Consolidate certain functions to operate more efficiently.
- Improve how our teams work together to provide care.
The health system’s HR team is working with affected employees, offering transition support and opportunities to pursue other roles within the organization. The team is also engaging with union partners and ensuring employees receive the support and protections outlined in their contracts.
“These are extremely difficult decisions because of their impact on our valued colleagues,” said UVM Health Chief Executive Officer Stephen Leffler, MD. “We must make these hard choices to ensure we can continue to provide high-quality care that is accessible and more affordable for the communities we serve.”
Addressing a significant financial challenge
These changes are necessary to address financial and operational pressures that UVM Health is facing along with hospitals and health systems nationwide. The health system is facing a projected $300+ million financial gap over the next three years. Since January, UVM Health has seen financial losses that amount to roughly $460,000 per day.
There are significant efforts already underway across the organization to begin addressing this gap, including:
- Reducing temporary contract “locum” and “traveler” staff (providers, nursing and non-nursing).
- Pausing discretionary spending.
- Right-sizing operations to hospitals’ daily patient census.
- Reducing scheduling backlogs and improving patient access in areas like radiology and endoscopy.
- Pausing variable pay for leaders.
- Transforming clinical schedules system-wide to increase patient access to care.
The changes also address the organization’s broader affordability goals by achieving greater operational efficiency.
Ongoing Focus on Administrative Efficiency
UVM Health is continuing a yearslong effort to reduce administrative expenses across the health system.
- In July 2025, the system eliminated 146 roles – 77 of which were filled – mostly in “shared service” administrative support functions.
- That built on earlier actions the health system took throughout the year to gradually cut several hundred primarily non-direct patient care roles.
- Late last year, multiple senior leadership positions were eliminated as part of a restructuring at the UVM Health system level.
Looking ahead
This sustainability work will continue over the next several years, in response to anticipated shifts in reimbursement for patient care and the need to embrace a new model for health care providers, here and across the country.
UVM Health expects additional actions will be needed over time, along with continued focus on protecting access to care, maintaining quality and safety and improving affordability.
“These steps are necessary to address the financial realities facing health care today,” Dr. Leffler said. “They are part of a longer-term effort to build a more sustainable system that can continue to serve our communities for years to come.”
6.9.2026. BURLINGTON, Vt. – University of Vermont Health
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