Providence Health System has confirmed the elimination of 35 positions in Alaska, primarily affecting leadership roles, as part of a broader initiative to reduce its national workforce.
According to representatives from the health care organization, this strategic decision aligns with a nationwide reduction that will see 600 full-time positions cut from Providence’s workforce of approximately 125,000 employees.
The decision to downsize comes in response to multiple economic pressures, including proposed cuts to Medicare and Medicaid, along with rising inflation and tariffs impacting operational costs.
Mikal Canfield, a spokesperson for Providence Alaska, indicated that the cuts will predominantly impact positions based in Anchorage, particularly within the Providence Alaska Medical Center, which is the largest hospital in the state.
Providence’s statement highlighted that the organization is navigating an environment characterized by reduced reimbursements and escalating costs.
These economic challenges encompass delayed payments and ongoing claims denials from commercial insurers, further exacerbated by new staffing laws enacted in some West Coast states that have raised labor costs.
Additionally, rising inflation and tariffs have significantly increased the costs of pharmaceuticals and other essential supplies, placing further financial strain on health care providers.
Particularly troubling are anticipated federal cuts to Medicare and Medicaid, which could substantially affect the delivery of health services.
A recent analysis by the nonpartisan Congressional Budget Office revealed that the House-passed budget reconciliation bill known as the One Big Beautiful Bill Act would cut Medicaid funding by an estimated $863 billion.
Medicaid plays a critical role in providing health insurance to low-income families, the elderly, and individuals with disabilities.
Moreover, the Congressional Budget Office indicated that this reconciliation bill, projected to increase the federal deficit, could trigger roughly $500 billion in mandatory cuts to Medicare spending over the next ten years.
Medicare primarily serves those aged 65 and older, making any cuts particularly significant for the elderly population.
In Alaska, local Republican Representative Nick Begich lent his support to the controversial bill, which threatens to reduce health and food benefits for numerous residents.
Providence operates across seven states in the Western U.S. and maintains a presence in six communities in Alaska.
With over 4,000 full and part-time employees, Providence is the largest private employer in Alaska.
The impending layoffs predominantly involve leadership positions, as part of a reorganization and consolidation effort within nursing units and other pivotal areas of the hospital.
As communicated by Canfield, Providence Alaska plans to notify 65 caregivers about the reduction-in-force initiative, resulting in the elimination of approximately 35 roles after a careful selection process aimed at streamlining leadership positions.
While the majority of cuts will target leadership roles, a small number of frontline and administrative positions will also be removed to eliminate redundancy.
Providence Alaska is committed to assisting affected employees by attempting to place them into alternative roles within the organization.
Currently, there are over 240 open positions across Alaska, providing potential opportunities for those impacted by the cuts.
Employees slated for termination will receive a 30-day notice, along with a market-competitive severance package and outplacement support to aid in their transition.
The recent reductions in Alaska follow a larger trend, with approximately 75 positions cut within the organization in 2025, representing about 1.5% of Providence Alaska’s workforce.
These reductions also include vacant positions and do not factor in caregivers who have transitioned to different roles within the organization.
On a national scale, the workforce reductions will primarily affect non-clinical administrative functions, although some patient-care roles will also be impacted.
Providence insists that relocation efforts will be made for individuals affected by these cuts, given that the organization currently has over 5,000 open positions.
In a statement issued by Darryl Elmouchi, the chief operating officer for Providence, he emphasized that such decisions are taken with great caution, acknowledging the vital contributions of each employee to the organization’s mission.
He explained that these necessary steps form part of a comprehensive plan aimed at ensuring financial sustainability, which enables Providence to reinvest in critical front-line care, including personnel, programs, equipment, and facilities needed to enhance community service.
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