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The U.S. Department of Health and Human Services (HHS) announced a significant restructuring plan on Thursday (March 27), which includes cutting 10,000 full-time employees across various health agencies. This reduction follows the voluntary departure of another 10,000 employees, bringing the workforce down from 82,000 to 62,000. The changes aim to save $1.8 billion annually and refocus the department's priorities.
HHS Secretary Robert F. Kennedy Jr. stated that the restructuring will consolidate the department from 28 to 15 divisions, including the creation of a new Administration for a Healthy America. This new administration will merge several existing agencies, such as the Office of the Assistant Secretary for Health and the Health Resources and Services Administration, to focus on primary care, mental health, and environmental health, among other areas.
The department will also reduce its regional offices from 10 to five and ensure that essential services like Medicare and Medicaid remain intact. The restructuring includes creating a new assistant secretary for enforcement and an Office of Strategy to enhance research and policy effectiveness.
The job cuts, mainly targeting administrative roles, will affect 8,000 to 10,000 employees, with specific notices expected soon. The changes will primarily impact high-cost regions and redundant roles within HHS. The American Federation of Government Employees union has been notified and may negotiate the impact and implementation of the cuts.
The overhaul is expected to face scrutiny and potential challenges, as it represents a significant shift in how the department operates.