Health Department to cut 10,000 employees

The U.S. Department of Health and Human Services on Thursday announced it was firing about 10,000 full-time employees and combining several departments in what it called a dramatic restructuring. The department plans to cut its workforce from 82,000 to about 62,000 through layoffs and early retirement. The reduction will save taxpayers about $1.8 billion a year, the department said.

The Health Department’s 28 divisions will be consolidated into just 15, with several merging to form the new Administration for a Healthy America, or AHA. The department said the changes came in response to President Donald Trump’s executive order directing the Department of Government Efficiency to oversee reductions in the federal workforce.

What are other reasons for the changes? Health Secretary Robert F. Kennedy Jr. in a Thursday video announcing the transformation said the Health Department had failed to make Americans healthier, despite a 38% increase in funding and 17% increase in staffing under the Biden administration. The United States trails other developed nations in health statistics despite spending more, Kennedy said.

How does Kennedy plan to improve Health Department services? Kennedy said he planned to cut administrative positions while hiring more scientists. He also promised services like Medicare and Medicaid would not be negatively affected. The secretary slammed what he characterized as siloed subagencies for selling patient data to each other rather than sharing resources. He said the planned department mergers would improve communication and stop wasteful spending. However, Kennedy admitted the department has a painful period ahead as it adjusts to the changes.

Dig deeper: Read my report on the Trump administration’s Supreme Court appeal to halt a federal employee rehiring order.