UNM Hospital cuts dozens of jobs in response to federal funding cuts, financial woes

The University of New Mexico Hospital has cut 53 positions as the state’s largest public health system faces deepening financial pressures and federal funding cuts.

A spokesperson for UNMH confirmed the numbers in a statement on Monday. The spokesperson said that some, but not all, of the positions were vacant and emphasized that the eliminated positions were executive positions, not roles like floor nurses and others who provide patient care.

“By taking these steps now, UNM Hospital is positioning itself to balance its current and future budgets. UNM Hospital remains committed to what is most important — providing health care for New Mexicans, in New Mexico,” Chris Ramirez, communication director for the hospital system, told the Journal.

The move comes amid a continued shortage of health care providers and workers in New Mexico, as well as a proposed reduction in federal funding for health care under the Trump administration.

“In order to be sure we are operating as efficiently as possible, and are as prepared as possible for federal funding changes which may lie ahead, we have implemented a number of financial improvement initiatives,” Ramirez said.

UNMH is also reviewing “contract expenses, including contract labor,” and “workflows to maximize efficiency and reduce operational expenses,” according to Ramirez.

Ramirez did not provide a breakdown of how many people were terminated and how many vacant positions were eliminated, but said the cuts were spread across the hospital system’s many units, including the hospital, Health Sciences Center and the Sandoval Regional Medical Center.

UNM folded in SRMC to its UNMH system in 2024. The move brought the Rio Rancho hospital into the system following approval from the UNM Board of Regents in 2023. At the time, UNMH officials said there would be no cuts to roles or salaries. But an internal email provided to the Journal showed that SRMC was hit particularly hard by the cuts.

The email shows that SMRC will lose its president, Jamie Silva-Steele, as well as its chief financial officer, chief human resources officer, executive director of support services, director of food and nutrition services and director of talent acquisition.

Those positions were under contract until June and will not be renewed.

The same email showed that four vacant director positions — including emergency services, case management, pharmacy, and quality — as well as the manager of surgical services were eliminated.

Yolanda Ulmer, the chief executive officer of the National Union of Hospital and Health Care Employees, confirmed to the Journal that no union employees were laid off. She also lauded UNMH for cutting management, not workers.

However, Ulmer said that bonuses for picking up extra shifts were paused to avoid cuts to the membership. She emphasized that the bonus suspension was temporary.

“We didn’t get rid of it. We put it on hold temporarily, but they’re still offering overtime work if needed to fill in the gaps,” Ulmer said.

Ulmer noted that contract negotiations are set for mid-May. The management contraction casts a cloud over the future.

“We all have to work collaboratively together and make sure that we organize around this situation that UNMH is facing,” Ulmer said. “We’ve got to make sure that our bargaining unit is well taken care of, and that’s what we’re going to do.”

In the statement, Ramirez stressed that UNMH, which also receives funding from state and local governments, has been burdened by the same financial troubles that all hospitals have faced following the onset of the COVID-19 pandemic.

A 2023 National Institutes of Health analysis found that hospitals nationwide lost $200 billion after a 45% decrease in revenue between March 1 and June 30, 2020. The analysis blamed the decline on the high cost of caring for COVID patients and a simultaneous explosion in labor costs.

According to testimony given to legislators by the New Mexico Hospital Association in 2024, two-thirds of New Mexico’s hospitals had higher expenses than revenue during that same year.

“We are grateful for the county, state and federal financial support we have received, and we are committed to being good stewards of those resources,” Ramirez said, adding, “Our mission of service to New Mexico means that we must deliver high-quality patient care in a financially sustainable model.”