New York hospital replaces 12 nurses with AI, igniting fury over patient care and labor rights

New York Hospital Replaces Nurses with AI After Historic Strike

Montefiore hospital in the Bronx has laid off 12 utilization review nurses and replaced them with AI-powered software, according to the New York State Nurses Association (NYSNA). The layoffs, which took effect Sunday, have ignited outrage among healthcare workers who view the move as a violation of the contract they recently secured through a 41-day strike1

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. Among those affected is Marilyn Shuler, who worked at Montefiore hospital for 39 years before losing her position to automation2

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The nurses replaced by AI performed utilization review work, examining patient records to demonstrate to insurance companies that care provided meets medical necessity standards and qualifies for coverage. Montefiore describes the AI system, provided by Datavant, as a nonclinical task tool designed to facilitate paperwork processes1

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. However, affected nurses argue their roles involve complex communications about medication changes and discharge planning that AI cannot adequately handle.

Timing Raises Questions About Labor Rights

The layoffs carry particular significance given their timing. In January 2026, approximately 15,000 nurses across several New York hospitals launched a massive strike that lasted 41 days3

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. The resulting three-year contract included historic safeguards against AI-driven job losses. Shaiju Kalathil, a nurse at Montefiore and union executive committee member, stated: "We are outraged about these layoffs because these dedicated nurses are being replaced by AI. This is a violation of the contract that we recently won by going on strike"1

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When Shuler and her colleagues returned to work in February following the strike, they noticed their workflow had changed without explanation. After the union contacted management about these changes, the hospital remained silent until May 28, when all 12 nurses in the department received 45-day notices2

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. "We were shocked and definitely disappointed because we repeatedly asked for transparency," Shuler told The Guardian2

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Concerns Over Patient Care Quality and Ethical Issues

The incident has raised serious questions about patient care quality in an AI-driven healthcare environment. National Nurses United (NNU), the parent organization of NYSNA, has developed an AI bill of rights for patients and nurses while pushing for protections through contracts and legislation2

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. Jamie Brown, a registered nurse and NNU president, noted that "hospital employers will find any opportunity to cut costs and cut corners on patient care and nurse staffing"2

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Shuler emphasized that while nurses aren't opposed to technological advancement, AI should complement rather than replace clinical expertise. "AI should be a tool used in conjunction with the clinical expert, not to replace," she said. "The issue is with new tech without evidence"1

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Adding to ethical concerns, NYSNA highlighted Datavant's reported connections to Palantir, the surveillance technology firm known for controversial collaborations with ICE. The union also noted a $900,000 payment Datavant made to settle a class-action lawsuit over a 2024 data breach affecting thousands of people1

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Hospital Defends Decision Amid Growing AI Adoption

Montefiore hospital disputes the union's characterization of events. Joe Solmonese, senior vice-president for government relations and strategic communications at Montefiore, stated: "As is often the case, the claims by NYSNA are inaccurate and misleading. What is true is that we are always investing in new technology to ensure the best care and outcomes for our patients"1

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This case represents one of the first AI-related layoffs handled by the nurses' union and signals broader challenges ahead for AI in healthcare. Warning signs have emerged globally about automation failures in medical settings. In Brazil, a 32-year-old woman reportedly died after an AI system for assigning hospital beds left her waiting five days for intensive care unit transfer3

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. Some companies are now rehiring workers they replaced with AI after the technology failed to deliver expected results1

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The situation at Montefiore hospital highlights the tension between cost-cutting measures and maintaining quality care standards. As AI adoption accelerates across healthcare systems, the incident serves as a test case for how institutions balance technological innovation with labor rights and patient safety. Healthcare workers and patients alike will be watching closely to see whether the AI system can truly replicate the nuanced clinical judgment that experienced nurses bring to utilization review work.