Montefiore Hospital replaces 12 nurses with AI, sparking contract violation claims

New York hospital replaces 12 nurses with AI, prompting warnings over patient care dangers

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. A hot potato: We're used to hearing stories about AI taking admin, call center, and similar jobs, but it's not just white-collar workers who are at risk. In New York, 12 nurses were laid off on Sunday and replaced by AI-powered software, some of whom had worked at the hospital for decades. The move came not long after the city's nurses went on strike and won a three-year contract. It's also led to warnings about the quality of care the AI will offer. According to the New York State Nurses Association (NYSNA), the layoffs, made by the Montefiore Medical Center in the Bronx, were a direct result of the AI-powered software provided by Datavant. Montefiore described it as a nonclinical program that helps facilitate the paperwork process. The software replaces 12 utilization review nurses who examine patient records and demonstrate to insurers that the care provided is medically necessary and eligible for coverage. AI-driven job losses spark outrage at the best of times, but what makes this incident even more controversial is the timing. On January 10, a 41-day nurses' strike began across several hospitals in New York. It led to a three-year contract, which included safeguards against AI. "We are outraged about these layoffs because these dedicated nurses are being replaced by AI," said Shaiju Kalathil, a nurse at Montefiore and a union executive committee member. "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." The NYSNA has also highlighted Datavant's reported ties to Palantir and a $900,000 payment to settle a class-action lawsuit over a 2024 data breach that affected thousands of people. Marilyn Shuler, one of the affected nurses, said that when she and her co-workers returned to work after the strike, their workflows had changed without explanation. The union was notified, and it contacted management. Around three months later, all 12 nurses in the department received 45-day notices. Shuler told The Guardian that her role often involves complex discussions about issues such as medication changes and discharge planning, which would be difficult to handle using AI. "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." Unsurprisingly, the hospital has a different view from the union. "As is often the case, the claims by NYSNA are inaccurate and misleading," said Joe Solmonese, senior vice-president for government relations and strategic communications at Montefiore. "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." There have been several stories recently about AI execs and analysts claiming the technology's impact on jobs has been much less severe than expected - or there's been no impact at all - despite all the evidence to the contrary. The good news is that more companies are now rehiring workers they replaced with AI after the automation failed to deliver.

The New York nurses replaced by AI: 'It should concern every patient who cares about quality of care'

The union for 12 nurses laid off by Montefiore hospital say company broke contract they recently won through a strike Marilyn Shuler has worked as a utilization review nurse for 39 years at Montefiore hospital in the Bronx in New York City, helping to read patient charts and communicate with insurance companies over coverage. After nearly four decades in her job, Shuler is one of 12 nurses who was laid off Sunday after being replaced with AI-powered software, according to the New York State Nurses Association (NYSNA), which represents nurses at the hospital. "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. "It's disrespectful, and it's very disheartening, and my colleagues feel the same way as well." National Nurses United (NNU), the parent union of NYSNA, has been raising the alarm about the effects AI will have on nurses. Shuler's case would be one of the first AI-related layoffs handled by the union. The union developed an AI bill of rights for patients and nurses, has been pushing for protections and guardrails in contracts and through legislation, and protested against employers using untested AI in patient care 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." The layoffs at Montefiore come in the wake of a massive nurses strike across several hospitals in New York City in January 2026. The new union contracts written after the strikes included safeguards against AI. But Shaiju Kalathil, a fellow nurse at Montefiore and a union executive committee member, said the layoffs violate this new contract. "We are outraged about these layoffs because these dedicated nurses are being replaced by AI," said Kalathil 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 that when she and her co-workers returned to work in February after the strike, their workflow had changed without explanation. After notifying the union, they sent an email to management about the changes. Shuler said they received no response until 28 May, when all 12 nurses in her department received 45-day notices that they would be laid off. "We were shocked and definitely disappointed because we repeatedly asked for transparency," Shuler said. Shuler said her job often requires complicated communications, over things like medication changes and discharge planning, that would be hard to conduct with AI. "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 did not comment specifically on the layoffs but said its technology changes are being used in a nonclinical program involving paperwork. "As is often the case, the claims by NYSNA are inaccurate and misleading," said Joe Solmonese, senior vice-president for government relations and strategic communications at Montefiore, 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."