AI-Driven Layoffs at Montefiore Hospital Spark Union Outcry

On 13 July 2026 Montefiore Medical Center in the Bronx announced the termination of 12 utilization-review nurses, including veteran Marilyn Shuler, after issuing 45-day layoff notices on 28 May. The positions were replaced by AI-powered software supplied by Datavant, which the hospital describes as a “nonclinical program” that automates paperwork related to insurance eligibility and coverage verification.

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The layoffs follow a citywide nurses’ strike that began on 10 January 2026 and resulted in a three-year contract containing explicit safeguards against the use of artificial intelligence in patient-care roles. Union representatives say the new AI system directly contravenes those contractual protections.

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Montefiore’s senior vice-president for government relations and strategic communications, Joe Solmonese, asserted that the hospital’s technology investments aim to improve patient outcomes and labeled the nurses’ union claims “inaccurate and misleading.” The hospital did not provide a detailed comment on the specific layoffs.

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The New York State Nurses Association (NYSNA) and its parent body, National Nurses United (NNU), contend that the AI replacement undermines both staffing levels and patient safety. Union executive committee member Shaiju Kalathil called the action “a violation of the contract that we recently won by going on strike.” Registered-nurse president Jamie Brown warned that hospital employers may use AI to “cut costs and cut corners on patient care and nurse staffing.”

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• “I’ve always, always taken so much pride in the organization that I’ve worked for all these years, and just to be treated this way,” — Marilyn Shuler, utilization-review nurse

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• “We are outraged about these layoffs because these dedicated nurses are being replaced by AI,” — Shaiju Kalathil, nurse and union executive committee member

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• “AI should be a tool used in conjunction with the clinical expert, not to replace,” — Marilyn Shuler

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• “As is often the case, the claims by NYSNA are inaccurate and misleading,” — Joe Solmonese, senior vice-president, Montefiore

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• “NNU nurses, like the nurses at Montefiore, have been on the frontlines of fighting hospital employers’ efforts to force unregulated and untested AI into patient care settings,” — Jamie Brown, registered nurse, NNU president

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The dispute highlights a growing tension between healthcare automation initiatives and labor agreements designed to protect clinical staffing.

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