HHS Undergoes Major Restructuring and Workforce Reduction

HHS Undergoes Major Restructuring and Workforce Reduction - Healthcare Law Update - May 2025 - Brach Eichler
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5/1/2025

On March 27, 2025, the U.S. Department of Health and Human Services (HHS) announced that it is undergoing a significant organizational transformation in line with the federal government’s broader efficiency and costcutting initiative. The restructuring is pursuant to an executive directive focused on streamlining operations and reducing the size of the federal workforce. As part of this initiative, approximately 10,000 employees across multiple HHS agencies — including the Food and Drug Administration, Centers for Disease Control and Prevention (CDC), and National Institutes of Health — are being laid off. These reductions, along with prior staffing changes and early retirement programs, will reduce HHS’s overall staff from 82,000 to 62,000.

The restructuring also incorporates several structural and functional changes, including the following:

• Creation of the Administration for a Healthy America: A new division that is a consolidation of multiple agencies and focuses on primary care, maternal and child health, mental health, and environmental health.

• Establishment of a New Assistant Secretary for Enforcement: This role will oversee appeals and civil rights enforcement to enhance accountability and combat fraud.

• Reorganization of Services for Older Adults and People with Disabilities: Critical programs that support older adults and people with disabilities will be integrated into other HHS agencies.

HHS states that essential services like Medicare and Medicaid will be unaffected by the restructuring.

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For more information, contact:
Joseph M. Gorrell | 973.403.3112 | jgorrell@bracheichler.com
Edward J. Yun | 973.364.5229 | eyun@bracheichler.com
Vanessa Coleman | 973.364.5208 | vcoleman@bracheichler.com

*This is intended to provide general information, not legal advice. Please contact the authors if you need specific advice.

Related Practices:   Healthcare Law

Related Industry:   Healthcare