Artificial intelligence has long been promoted as a tool to help doctors and nurses, not replace them. But a controversial decision at a New York hospital is challenging that promise after several veteran nurses were laid off following the rollout of AI-powered review software. The move has ignited a fierce dispute between hospital leaders and nurses’ unions, raising difficult questions about whether automation is beginning to displace experienced healthcare workers and what that could mean for patient care. Here’s what happened, why the layoffs are drawing national attention, and how the hospital is defending its decision.
Veteran nurses lose jobs as AI enters hospital workflow
Montefiore Hospital in the Bronx, New York, is facing growing backlash after 12 experienced utilization review nurses were laid off, with the New York State Nurses Association (NYSNA) alleging the positions were effectively replaced by AI-powered review software.
One of the affected employees was Marilyn Shuler, who had spent 39 years at Montefiore Hospital reviewing patient records and coordinating with insurance companies to help secure medical coverage. After nearly four decades with the hospital, she was among the dozen nurses notified that their positions were being eliminated.
“I’ve always, always taken so much pride in the organization that I’ve worked for all these years, and just to be treated this way,” Shuler said, according to The Guardian. “It’s disrespectful, and it’s very disheartening, and my colleagues feel the same way as well.”
The layoffs are drawing national attention because they represent what labor leaders believe is one of the first documented cases in which unionized nurses have lost their jobs as artificial intelligence becomes integrated into hospital operations.
National Nurses United (NNU), the parent organization of NYSNA, has spent years campaigning for stronger safeguards around the use of AI in healthcare. The union has advocated for an AI Bill of Rights for nurses and patients, pushed for contract protections, and lobbied lawmakers to regulate the technology before it becomes more deeply embedded in clinical settings.
“NNU nurses, like the nurses at Montefiore, have been on the frontlines of fighting hospital employers’ efforts to force unregulated and untested AI into patient care settings,” said Jamie Brown, a registered nurse and president of NNU. “Nurses know from experience that hospital employers will find any opportunity to cut costs and cut corners on patient care and nurse staffing.”
Union claims layoffs violate recently negotiated contract
The dispute comes only months after thousands of nurses across New York City participated in a major strike that resulted in new labor agreements, including provisions intended to establish guardrails around the use of artificial intelligence in the workplace.
According to Shaiju Kalathil, a Montefiore nurse and member of the union’s executive committee, the hospital’s decision runs counter to those newly negotiated protections.
“We are outraged about these layoffs because these dedicated nurses are being replaced by AI,” Kalathil said in a statement. “This is a violation of the contract that we recently won by going on strike. It should also concern every practitioner and patient who cares about the future of healthcare and the quality of care they receive.”
Shuler said warning signs appeared shortly after nurses returned to work following the February strike. Their day-to-day responsibilities had been altered, but management allegedly did not explain the changes.
After raising concerns through their union and requesting clarification from hospital leadership, the nurses said they received no meaningful response. Instead, on May 28, all 12 members of the utilization review department were issued 45-day layoff notices.
“We were shocked and definitely disappointed because we repeatedly asked for transparency,” Shuler shared.
Montefiore Hospital defends AI rollout
While Shuler emphasized that she supports technological innovation in medicine, she believes many aspects of utilization review still depend on experienced clinical professionals rather than automated systems. She said her job frequently involved navigating complex issues such as medication adjustments, discharge planning, and detailed discussions with insurers — tasks she argues require human judgment.
“AI should be a tool used in conjunction with the clinical expert, not to replace,” she said. “We’re not against technology. There are several advances in healthcare utilizing technology. The issue is with new tech without evidence.”
Montefiore Hospital disputed the union’s characterization of the situation but declined to directly address the layoffs. In a statement, Joe Solmonese, the hospital’s senior vice-president for government relations and strategic communications, said the AI-powered software in question is being used within a nonclinical administrative program focused on documentation and paperwork.
“As is often the case, the claims by NYSNA are inaccurate and misleading,” Solmonese said in an email. “What is true is that we are always investing in new technology to ensure the best care and outcomes for our patients and will continue to do so for the betterment of the people we serve.”
A warning sign for the future of healthcare
What is happening in the Bronx is more than just a fight over jobs. It is a big risk for the future of healthcare. To save money, hospitals are betting that software can do the same work as experienced human staff. But this raises a simple question: Can a computer program really match the deep knowledge and good judgment that a nurse builds over decades on the job?
The truth is, nobody knows yet. Hospitals are essentially testing new technology on real people’s careers. While executives see this as an easy way to cut costs, veteran nurses see it as a dangerous gamble. And for the workers who are losing their jobs to algorithms today, the cost of this experiment is already far too high.
Source:
The Guardian