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Health Sector Restructuring Sparks Investor Curiosity

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The Centers for Medicare & Medicaid Services has reportedly eliminated jobs in multiple key divisions, including its Office of Minority Health, as part of a sweeping restructuring effort led by Health and Human Services Secretary Robert F. Kennedy Jr.

During a virtual all-hands meeting on Friday, CMS Acting Administrator Stephanie Carlton confirmed that the cuts were part of Kennedy’s broader plan to downsize the Department of Health and Human Services, CNBC reports.

Though CMS saw about 300 job cuts, the overall plan affects 10,000 HHS employees and marks one of the most significant federal health workforce reductions in decades.

Offices hit include the Office of Minority Health, which focuses on eliminating health disparities, and the Medicare-Medicaid Coordination Office, which serves individuals eligible for both programs, the report adds.

Also Read: US Department of Health And Human Services Aligns With Trump’s Executive Order, To Cut 10K Jobs, Save $1.8 Billion

Carlton also cited significant reductions in the Office of Program Operations & Local Engagement—tasked with local stakeholder outreach—and an office managing grants and contracts.

Carlton said the layoffs aimed to streamline overlapping divisions while maintaining critical services.

Dr. Mehmet Oz, confirmed by the Senate this week to lead CMS, is expected to address employees in a follow-up meeting, CNBC adds.

Once known as “America’s Doctor,” Oz brings a controversial public health reputation due to his promotion of unproven supplements.

Kennedy has acknowledged the potential for mistakes in the cuts and suggested some programs may be reinstated.

Meanwhile, the U.S. faces urgent health challenges—including a major measles outbreak and growing bird flu concerns—while the FDA has been forced to scale back food safety testing due to staffing losses.

The legal status of shuttering the Office of Minority Health remains unclear, given its authorization under the Affordable Care Act.

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