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Montefiore Hospital Plans to Replace 12 Nurses with AI Software, Union Responds
Montefiore Hospital in the Bronx announced that it will lay off 12 utilization‑review nurses and replace them with artificial‑intelligence (AI) software, a decision that has triggered a sharp backlash from the New York State Nurses Association (NYSNA). The move follows a record‑long strike that ended earlier this year and is being described by the union as a breach of the contract it secured through that action.
According to NYSNA, the hospital intends to outsource the work of utilization‑review nurses—who read patient charts and negotiate with insurance companies for coverage—to an AI platform. The union says the software will be used to make final coverage decisions, effectively removing licensed nurses from that critical role. The announcement was made public in a press release issued by NYSNA on July 1, 2026.
In a virtual town hall held on July 5, 2026, NYSNA nurses and community members discussed the potential impact of the plan. The union highlighted that the nurses’ decades of bedside experience and clinical judgment are essential for reviewing insurance denials and ensuring patients receive covered care. “What we want from Montefiore is simple: Stop the layoffs, keep a Licensed Nurse on the final review, use AI to support us instead of replacing us, and sit down with the Nurses who actually do this work,” said Marilyn Shuler, a 39‑year‑old utilization‑review nurse slated for layoff.
The union also raised concerns about the technology provider. Montefiore has chosen Datavant, a private‑equity‑backed company that partners with Palantir. Datavant has a history of data breaches and has been used by U.S. Immigration & Customs Enforcement to surveil and deport immigrants. NYSNA officials expressed worry that outsourcing access to private medical records—potentially including immigration status—could expose sensitive data.
Nurses at the town hall warned that replacing human judgment with AI could lead to missed diagnoses or denied surgeries. “If AI replaces nurses’ clinical judgment, complicated cases may be dropped, and that means a missed diagnosis or a surgery never gets approved,” the union said.
Shaiju Kalathil, an NYSNA executive‑committee member at Montefiore, called the layoffs “outrageous” and said they violated the contract that the union won by striking. “This should also concern every practitioner and patient who cares about the future of health care and the quality of care they receive,” Kalathil said.
NYSNA president Nancy Hagans added that AI should never replace real human caring from a nurse. “The (45,000) members of NYSNA fully support this fight to protect our patients and practice from AI,” she said.
Montefiore’s decision comes amid a broader trend of hospitals exploring AI for utilization review and other administrative tasks. While AI can reduce paperwork, critics argue that it can also introduce errors, bias, and a loss of human oversight. The union’s stance reflects growing concern among nursing professionals that AI tools may erode job security and compromise patient safety.
The union has called for a meeting with Montefiore leadership to discuss the plan and to negotiate safeguards that preserve licensed nurses in the final review process. It also urged the hospital to provide evidence that the AI system has been validated for accuracy and patient safety before deployment. At present, the plan’s implementation timeline is unclear. Montefiore has not announced a specific date for the layoffs or the rollout of the AI platform. The union’s press release indicates that the decision was made after the strike and that the hospital intends to proceed without further negotiation.
The situation remains unresolved, with the union continuing to lobby for a reversal of the plan and for stronger protections for nurses and patients. The outcome will likely influence how other hospitals in the region and beyond approach the integration of AI into clinical workflows. The broader implications of this dispute touch on labor rights, data privacy, and the ethical use of AI in healthcare. As hospitals consider AI solutions for cost containment, the Montefiore case highlights the need for clear contractual safeguards and transparent validation of AI tools.
In the coming weeks, stakeholders will monitor whether Montefiore proceeds with the layoffs, whether the union secures a compromise, and whether the AI platform is deployed. The case may set a precedent for how hospitals balance technology adoption with workforce protections and patient safety.
According to NYSNA, the hospital intends to outsource the work of utilization‑review nurses—who read patient charts and negotiate with insurance companies for coverage—to an AI platform. The union says the software will be used to make final coverage decisions, effectively removing licensed nurses from that critical role. The announcement was made public in a press release issued by NYSNA on July 1, 2026.
In a virtual town hall held on July 5, 2026, NYSNA nurses and community members discussed the potential impact of the plan. The union highlighted that the nurses’ decades of bedside experience and clinical judgment are essential for reviewing insurance denials and ensuring patients receive covered care. “What we want from Montefiore is simple: Stop the layoffs, keep a Licensed Nurse on the final review, use AI to support us instead of replacing us, and sit down with the Nurses who actually do this work,” said Marilyn Shuler, a 39‑year‑old utilization‑review nurse slated for layoff.
The union also raised concerns about the technology provider. Montefiore has chosen Datavant, a private‑equity‑backed company that partners with Palantir. Datavant has a history of data breaches and has been used by U.S. Immigration & Customs Enforcement to surveil and deport immigrants. NYSNA officials expressed worry that outsourcing access to private medical records—potentially including immigration status—could expose sensitive data.
Nurses at the town hall warned that replacing human judgment with AI could lead to missed diagnoses or denied surgeries. “If AI replaces nurses’ clinical judgment, complicated cases may be dropped, and that means a missed diagnosis or a surgery never gets approved,” the union said.
Shaiju Kalathil, an NYSNA executive‑committee member at Montefiore, called the layoffs “outrageous” and said they violated the contract that the union won by striking. “This should also concern every practitioner and patient who cares about the future of health care and the quality of care they receive,” Kalathil said.
NYSNA president Nancy Hagans added that AI should never replace real human caring from a nurse. “The (45,000) members of NYSNA fully support this fight to protect our patients and practice from AI,” she said.
Montefiore’s decision comes amid a broader trend of hospitals exploring AI for utilization review and other administrative tasks. While AI can reduce paperwork, critics argue that it can also introduce errors, bias, and a loss of human oversight. The union’s stance reflects growing concern among nursing professionals that AI tools may erode job security and compromise patient safety.
The union has called for a meeting with Montefiore leadership to discuss the plan and to negotiate safeguards that preserve licensed nurses in the final review process. It also urged the hospital to provide evidence that the AI system has been validated for accuracy and patient safety before deployment. At present, the plan’s implementation timeline is unclear. Montefiore has not announced a specific date for the layoffs or the rollout of the AI platform. The union’s press release indicates that the decision was made after the strike and that the hospital intends to proceed without further negotiation.
The situation remains unresolved, with the union continuing to lobby for a reversal of the plan and for stronger protections for nurses and patients. The outcome will likely influence how other hospitals in the region and beyond approach the integration of AI into clinical workflows. The broader implications of this dispute touch on labor rights, data privacy, and the ethical use of AI in healthcare. As hospitals consider AI solutions for cost containment, the Montefiore case highlights the need for clear contractual safeguards and transparent validation of AI tools.
In the coming weeks, stakeholders will monitor whether Montefiore proceeds with the layoffs, whether the union secures a compromise, and whether the AI platform is deployed. The case may set a precedent for how hospitals balance technology adoption with workforce protections and patient safety.
