Alameda Health System announces layoffs of nearly 300 workers due to Medicaid cuts

Alameda Health System, which runs public hospitals and clinics throughout the East Bay, announced plans to lay off nearly 300 people in January 2026 in anticipation of Medicaid cuts from the Trump administration's One Big Beautiful Bill. The health system said it expects to lose more than $100 million annually by 2030 due to H.R. 1. The total annual budget for AHS is roughly $1.4 billion, and the system could face an additional $60 million in cuts annually from federal funding that allows states to pay hospitals that treat a large share of Medi-Cal patients. About 60% of AHS patients are covered by Medi-Cal. The system identified 372 positions that could be impacted by the downsizing. Affected employees would be from departments across the system including management, support, administrative services, and clinical care. Unionized employees would receive severance packages.