Artificial intelligence (AI) has sparked a wave of unemployment that has now spread to hospitals. On July 1st, the New York State Nurses Association (NYSNA) held a press conference to announce that Montefiore Medical Center in the Bronx had issued layoff notices to 12 senior nurses due to the introduction of AI automation software.
Despite a spokesperson for the hospital later releasing a statement refuting the union’s claims as “inaccurate and misleading,” the union presented copies of the termination letters that the nurses had received, causing the first “AI taking nurses’ jobs” incident in New York to instantly draw social attention.
According to the union, these 12 nurses who received layoff notices all worked in the hospital’s Utilization Review department.
In this department, nurses are responsible for advocating for patients with their medical insurance companies based on their own clinical expertise, proving the necessity of the medical treatment, surgery, or hospitalization the patients received to ensure insurance coverage.
However, the nurses who were laid off pointed out that Montefiore Medical Center quietly changed this review process earlier this year to heavily rely on an AI review software developed by a tech company.
According to a copy of the termination letter provided by the union, the letter was signed by the hospital’s HR manager on May 28th. The letter stated, “I regret to inform you that your position will be terminated 45 days from the date of this notice.” The hospital added in the letter that during this 45-day window, they would check if there were any other “suitable vacancies” within the hospital system to place these nurses. This means that if there are no vacancies, these nurses will officially be unemployed on July 12th.
In the collective bargaining agreement eventually reached between the union and Montefiore Medical Center, it explicitly stated that if the introduction or use of AI technology leads to layoffs among union members, the hospital management must first negotiate with the union to discuss how to prevent employee layoffs.
The union stated that the hospital had not fulfilled its promise to meet with the union before sending out the layoff letters at the end of May. As a result, on June 1st, the union filed a collective lawsuit and labor arbitration against the hospital, accusing it of breaching the agreement.
Facing the accusations, a spokesperson for Montefiore Medical Center stated in a release, “As always, the claims made by the New York State Nurses Association are inaccurate and misleading. The fact is, we have been investing in new technology to ensure our patients receive the best care and medical outcomes, and we will continue to strive for the well-being of the community.” However, the hospital declined to confirm whether layoff letters were sent out and refused to disclose details of the contract with the tech company.
Several Bronx elected officials also attended the union’s press conference to express support for the nurses. Democratic New York State Assemblywoman Amanda Septimo stated that she does not oppose technological progress but emphasized the need for strict oversight of AI to prevent it from being used by hospitals to cut costs at the expense of patient care quality.
In a statement, the union demanded that Montefiore Medical Center immediately halt the layoff countdown and return to the negotiating table with the union to discuss alternative solutions. An email inquiry to the PR department of Montefiore Medical Center for comment was not responded to at the time of publication.