Kootenai Health Cuts 80 Positions as Costs and Reimbursement Pressures Grow

Kootenai Health confirmed on November 9, 2026, that it is eliminating 80 positions in North Idaho. The announcement was covered by the Coeur d’Alene Press, which said the system confirmed Monday that it’s eliminating 80 positions. At Metaintro, we track layoffs, store closures and return-to-office mandates in our layoffs tracker.

How Many Positions Are Affected?

The confirmed reduction is eliminating 80 positions. The organization is described as North Idaho’s largest healthcare system and employer and a private 501(c)(3) nonprofit that currently employs more than 4,500 staff members.

For employees awaiting individual updates, the notification process is an immediate concern. Notifications for the eliminated positions are either underway or will be made later this week, according to the announcement coverage. The employer described the affected positions as being “are in areas where we need to improve efficiency,”.

The decision followed an operational review. In a prepared statement, Jamie Smith said the changes help position the health system to meet future demand while remaining financially responsible and operationally effective. He also said, “They follow extensive evaluation of our operations and thoughtful discussions with leaders across the organization.”

Why Is Kootenai Health Eliminating Positions?

The financial explanation combines rising expenses with pressure on payments for care. The employer described its “targeted workforce changes” come as it faces mounting cost increases. Its annual drug expenses have increased by more than $60 million over the past two years.

That increase was attributed to the loss of 340B Disproportionate Share Hospital status, a designation associated with federal drug discounts. The main hospital has 397 beds.

Smith described reimbursement difficulties across public and commercial insurance. He said, “Medicare reimbursement rates are increasing far below inflation. At the state level, Medicaid coverage and reimbursement in Idaho have been reduced,”. He also pointed to commercial payers deny or delay payments, and medical supply costs are increasing by double digits.

The healthcare trade publication also covered those pressures, describing slow-to-increase Medicare reimbursement, higher expenses, commercial payment delays and the loss of statutory discounts. Together, these are the financial conditions the employer cited for its workforce decision.

What Support Is Available For Caregivers?

The employer acknowledged the personal consequences of the reduction. Smith said it recognizes that the changes are difficult and deeply personal for those affected. He described its approach as committed to treating every caregiver with compassion, respect and transparency.

Its prepared statement addressed both internal opportunities and support for people leaving. The organization said, “Whenever possible, we will work to identify opportunities elsewhere within our organization and provide support resources to those transitioning out of Kootenai Health.”

For job seekers considering an internal move, the system still currently has 139 open positions. The trade coverage likewise noted 139 other positions that are open. The employer's commitment to identifying opportunities was expressly qualified by Whenever possible, we will work to identify opportunities elsewhere within our organization.

What Happens Next For Hospital Investments?

Alongside the workforce reduction, the system described continued investment in facilities. It is currently working on the new Prairie Medical Campus at Highway 41 and Prairie Avenue in Post Falls. That project includes a 25,000-square-foot Micro Hospital and 72,000-square-foot Medical Office Building.

Smith connected expansion to demand for care. He said, “There are times when we see volume at or near our capacity limits.” The system has developed a master facility plan for the main campus in Coeur d’Alene, and Smith said, “The first phase of this plan will begin in late 2027.”

Its investment priorities also include surgical robotics, imaging equipment and other technology. The employer presented the workforce changes alongside high cost and reimbursement challenges as well as the need for major investments in facilities and programs.

What Should Affected Workers Do Next?

• Review your notification. Save a personal copy of your employment notice and any transition documents. Ask for written clarification of your final work date, pay arrangements and outstanding responsibilities.

• Ask about internal opportunities. Compare available roles with your qualifications and preferred schedule. Request guidance on the application process and how a transfer would affect your employment terms.

• Confirm benefits arrangements. Review when current coverage ends and what continuation options apply. Keep deadlines and required documents together so you can act promptly.

• Prepare your application materials. Update your resume with relevant responsibilities, credentials and accomplishments. Use examples that demonstrate your skills without including confidential patient or workplace information.

• Document transition support. Ask what career assistance and other resources are available to you. Keep contact details and written instructions accessible after workplace account access ends.

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People Also Asked

Q: How Many Positions Is Kootenai Health Eliminating?

A: The employer confirmed Monday that it’s eliminating 80 positions. Notifications are either underway or will be made later this week, according to the announcement coverage.

Q: Does Kootenai Health Still Have Open Positions?

A: The system still currently has 139 open positions. Its transition statement includes a commitment to identify opportunities elsewhere within our organization and provide support resources, whenever possible.

Q: Why Did Kootenai Health Make These Changes?

A: The employer cited mounting cost increases and reimbursement pressures. Its explanation included drug expenses that have increased by more than $60 million over the past two years and the need for continued investment.

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