Providence health system cutting 35 Alaska positions as part of national reduction

Providence is cutting 35 positions in Alaska, mostly in leadership roles, as part of a national reduction in its workforce, according to representatives of the health care organization.

The move is related in part to proposed cuts in Medicare and Medicaid, along with inflation and tariffs, according to Providence.

Nationally, the organization will cut 600 full-time positions from its 125,000-person workforce, Providence said in a statement.

The cuts in Alaska will apply only to Anchorage-based positions, mostly at Providence Alaska Medical Center, the state’s largest hospital, according to Mikal Canfield, a spokesperson with Providence Alaska.

Nationally, Providence, like other health organizations, is responding to “multiple pressures,” in an “an era of reduced reimbursement and higher costs,” the statement said.

The challenges include delayed payments and ongoing denials from commercial insurers, Providence’s statement said. New staffing laws in some West Coast states have boosted labor costs, the statement said.

Inflation and tariffs have led to higher costs for pharmaceuticals and supplies, the statement said.

Potential federal cuts to Medicare and Medicaid are also a factor, the statement said.

The nonpartisan Congressional Budget Office found that the House-passed budget reconciliation bill, the One Big Beautiful Bill Act, would cut Medicaid by $863 billion, according to KFF, a nonprofit group focused on health policy in the U.S.

Medicaid provides health insurance to low-income households, the elderly, people with disabilities and others.

Since the reconciliation bill is projected to increase the deficit, the Congressional Budget Office found it would trigger about $500 billion in mandatory reductions in Medicare spending over a decade, according to KFF.

Medicare provides health insurance primarily for people 65 or older.

Alaska GOP Rep. Nick Begich voted in favor of the bill, which could cut health and food benefits for thousands of Alaskans. It’s now before the U.S. Senate.

Providence cuts in Alaska

Providence operates in seven states in the Western U.S., and in six Alaska communities. It’s the largest private employer in Alaska, with more than 4,000 full and part-time employees.

The cuts in Alaska will mostly be in leadership roles, Canfield said.

“Locally, Providence Alaska Medical Center is implementing a reorganization and leadership consolidation in its nursing units and other key areas of the hospital,” said a statement provided by Canfield. “While most of these are leader positions being consolidated, a handful of frontline and administrative positions will also be eliminated to reduce duplication of work.”

Sixty-five Providence Alaska caregivers will receive reduction-in-force notifications as part of these efforts, according to the statement.

“After a closed-compete selection process for a reduced number of leader roles, Providence Alaska will eliminate about 35 positions,” the statement said.

Providence Alaska will try to find other positions for caregivers affected by the cuts, the statement said.

“Providence currently has more than 240 open positions in Alaska. Those leaving Providence will receive 30 days’ termination notice, market-competitive severance and outplacement assistance,” the statement said.

Including the current reductions, Providence Alaska has eliminated about 75 positions in 2025 — about 1.5% of the organization’s Alaska workforce, the statement said. The cuts include vacant positions and do not include caregivers who transitioned to other roles at Providence.

The nationwide reductions to staff at Providence will primarily affect “non-clinical, administrative functions, though some patient-care roles are also impacted,” the statement from Providence’s national headquarters said.

Nationally, individuals who are cut will be moved to other positions whenever possible, the statement said. The organization has more than 5,000 open positions.

“Transitional resources are also being provided to those who are impacted,” the statement said.

“We do not take decisions like this lightly and recognize that behind every role is a person, colleague, friend and caregiver whose contributions have helped carry out our Mission,” said Darryl Elmouchi, chief operating officer for Providence, in the statement. “These difficult but necessary steps are part of a comprehensive approach to financial sustainability that will enable our family of organizations to better reinvest in and revitalize the front lines of care, including the people, programs, equipment and facilities needed to serve our communities.”