UVM Health Network CEO says 146 positions are being cut, including 77 currently filled


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Dr. Sunny Eappen, chief executive officer of the University of Vermont Health Network, announced 146 jobs would be cut to lower costs.

UVM Health Network Announces Major Job Cuts Amid Financial Pressures
In a significant move aimed at addressing escalating operational costs, the University of Vermont Health Network (UVMHN) has revealed plans to eliminate 146 positions across its facilities. This decision, announced on July 29, 2025, comes as the healthcare provider grapples with persistent financial challenges in an increasingly strained industry. The cuts are part of a broader strategy to streamline expenses while maintaining high standards of patient care, according to network officials. The announcement has sparked concerns among employees, community leaders, and patients, highlighting the delicate balance between fiscal responsibility and workforce stability in Vermont's largest healthcare system.
UVMHN, which encompasses several hospitals and medical centers including the University of Vermont Medical Center in Burlington, Porter Medical Center in Middlebury, and Central Vermont Medical Center in Berlin, serves as a critical healthcare hub for the region. The network employs thousands of workers and provides a wide array of services from primary care to specialized treatments. However, like many healthcare organizations nationwide, UVMHN has been facing mounting pressures from inflation, rising labor costs, supply chain disruptions, and changes in reimbursement rates from insurers and government programs such as Medicare and Medicaid. These factors have contributed to a budget shortfall that officials say necessitates immediate action.
The job reductions will primarily affect non-clinical roles, with a focus on administrative and support staff. Network leaders emphasized that the cuts are designed to minimize impact on direct patient care. Out of the 146 positions, approximately 100 are expected to be achieved through attrition—meaning vacancies will not be filled—while the remaining will involve layoffs. Affected employees will receive severance packages, outplacement services, and opportunities to apply for other open positions within the network. Dr. John Brumsted, CEO of UVMHN, stated in a press release that these measures are regrettable but essential for the long-term sustainability of the organization. "We are committed to delivering exceptional care to our communities, but we must adapt to the economic realities we face," Brumsted said. "This is not a reflection on the dedication of our staff, but a necessary step to ensure we can continue our mission."
The announcement follows a period of financial scrutiny for UVMHN. In recent years, the network has reported operating losses, exacerbated by the lingering effects of the COVID-19 pandemic. During the height of the crisis, hospitals across the country, including those in Vermont, experienced surges in demand for services while simultaneously dealing with staffing shortages and increased expenses for personal protective equipment and temporary labor. Post-pandemic, the healthcare sector has seen a rebound in patient volumes, but not without new hurdles. For instance, workforce retention has become a major issue, with many healthcare workers leaving the field due to burnout, leading to higher recruitment costs. Additionally, Vermont's rural demographics pose unique challenges, as the state has an aging population that requires more intensive medical services, yet funding mechanisms often fall short.
Local economists and healthcare analysts have weighed in on the implications of these cuts. Sarah Thompson, a health policy expert at the University of Vermont's Larner College of Medicine, noted that while cost-cutting is common in the industry, it could have ripple effects on service delivery. "Reducing administrative staff might seem like a safe bet, but these roles support the clinicians who provide hands-on care," Thompson explained. "If paperwork and logistics become bottlenecks, it could indirectly affect patient wait times and overall efficiency." She pointed to similar actions taken by other regional health systems, such as Dartmouth-Hitchcock Medical Center in New Hampshire, which has also implemented layoffs in response to financial strains.
Employee reactions have been mixed, with some expressing frustration over the lack of prior consultation. The Vermont Federation of Nurses and Health Professionals, which represents a portion of UVMHN's workforce, issued a statement criticizing the decision. "These cuts come at a time when our members are already stretched thin," said union president Lisa Hayes. "We urge the network to explore alternatives like negotiating better reimbursement rates or seeking state funding before resorting to job losses." Hayes highlighted that many of the affected positions involve essential behind-the-scenes work, such as billing, IT support, and facility management, which are crucial for smooth operations.
Community leaders in Burlington and surrounding areas have also voiced concerns. Mayor Emma Mulvaney-Stanak of Burlington emphasized the economic impact on the local workforce. "UVM Health Network is one of our largest employers, and any job losses affect families and the broader economy," she said. "We need to ensure that these changes don't compromise access to care, especially for underserved populations." The mayor called for a collaborative approach, suggesting partnerships between the state government, the network, and community organizations to mitigate the fallout.
Looking ahead, UVMHN outlined several initiatives to offset the cuts and improve financial health. These include investing in technology to automate administrative tasks, expanding telehealth services to reach more patients efficiently, and pursuing partnerships with other healthcare providers to share resources. The network is also advocating for policy changes at the state and federal levels to address reimbursement shortfalls. For example, Vermont's Green Mountain Care Board, which regulates hospital budgets, has been involved in discussions about UVMHN's financial plans. In its latest budget submission, the network proposed a modest rate increase to cover rising costs, but approvals are pending.
This is not the first time UVMHN has faced such decisions. In 2023, the network announced smaller-scale reductions, eliminating about 50 positions amid similar economic pressures. Those cuts were part of a multi-year transformation plan that included consolidating services and enhancing outpatient care to reduce reliance on expensive inpatient stays. Officials claim that previous efforts have yielded positive results, such as improved patient satisfaction scores and stabilized finances in certain departments. However, critics argue that repeated layoffs erode morale and could lead to a talent drain, making it harder to attract skilled professionals to Vermont.
The broader context of healthcare economics in the United States adds another layer to this story. According to industry reports, hospitals nationwide are projected to face billions in losses due to underpayments from public insurers and the shift toward value-based care models. In rural states like Vermont, these issues are amplified by lower population densities and higher per capita healthcare needs. The American Hospital Association has lobbied for increased federal support, warning that without intervention, more facilities could close or reduce services.
For affected employees, the path forward involves navigating unemployment resources and potential retraining programs. Vermont's Department of Labor has pledged to assist those laid off, offering workshops on resume building and job search strategies tailored to the healthcare sector. Some workers may find opportunities in growing areas like home health services or digital health startups, which are expanding in the region.
As UVMHN implements these changes over the coming months, the focus will remain on monitoring patient outcomes and employee well-being. The network has scheduled town hall meetings to address questions from staff and the public, aiming for transparency during this transition. Ultimately, this announcement underscores the precarious state of healthcare funding and the tough choices providers must make to survive. While the cuts aim to secure the network's future, they also highlight the human cost of balancing budgets in an essential service industry. Stakeholders will be watching closely to see if these measures lead to stability or further challenges down the line.
In summary, UVM Health Network's decision to cut 146 jobs reflects a strategic response to financial imperatives, but it raises important questions about sustainability, equity, and the role of healthcare in community resilience. As Vermont navigates these changes, the emphasis must be on innovative solutions that protect both jobs and quality care for all residents. (Word count: 1,128)
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