Montefiore Hospital Lays Off 12 Nurses, Replacing Them With AI System

Montefiore hospital in the Bronx laid off 12 utilization review nurses, replacing their work with an AI system, in what their union calls a contract violation.

A 39-year veteran nurse was among 12 utilization review nurses laid off by Montefiore hospital in the Bronx on Sunday — positions the hospital is replacing with an artificial intelligence system. Marilyn Shuler and her colleagues worked in utilization review, a role that involves reading patient charts and communicating with insurance companies to determine coverage for care. Their layoffs came after the nurses' union had recently won a new contract through a strike. The union representing the nurses argues that Montefiore violated that newly negotiated contract by eliminating the positions in favor of AI. Utilization review nurses serve as a critical link between clinical care and insurance approval, and their advocates say no algorithm can replicate the nuanced judgment required in those decisions. The layoffs at Montefiore reflect a broader trend of hospitals and health systems exploring AI tools to automate administrative and clinical support functions, with utilization review — a labor-intensive, document-heavy process — among the first areas targeted.

Why it matters

The case highlights the real-world impact of AI adoption on healthcare workers and raises questions about patient care quality when human clinical judgment in insurance review is replaced by automated systems. It may also set a precedent for how labor contracts address AI-driven job displacement in unionized healthcare settings.

What's next

The nurses' union is expected to pursue a contract grievance or legal challenge against Montefiore over the alleged violation of its recently negotiated agreement.

Key facts

Bias & framing notes

Both sources share the same headline and appear to originate from The Guardian, with Biztoc republishing the same article. Because only one original outlet is represented, independent corroboration is absent. Coverage is framed entirely from the nurses' and union's perspective; no statement or rationale from Montefiore hospital management is included, leaving the hospital's side unrepresented.

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