Presbyterian Healthcare Services is laying off roughly 135 workers in its insurance and administrative divisions, marking its second major round of layoffs since the system announced 150 cuts this summer.
The layoffs follow the health system’s decision to cut most of its Medicare Advantage plans. Clinical staff will not be affected by the latest reductions, according to a Thursday statement from Presbyterian.
Rishi Sikka told the Journal in June that discontinuing the plans was designed to stem losses on Medicare Advantage, which hit $59 million in 2025. Roughly 30,000 people were affected by that decision, though the system plans to continue serving about 13,000 people who use its Medicare Advantage Dual Plus Special Needs Plan.
Laid-off employees were notified on Thursday. Some are departing immediately, while others will remain for the coming months to support members and complete transition work.
Financially, the system has faced steep headwinds with expenses regularly outpacing revenue. Tax records show Presbyterian lost more than $150 million each year in 2022 and 2023. Outlook improved slightly in 2024, the most recent year for which filings are available, with the system reporting a net income of $84 million.
Audited financial statements using different accounting principles show the system has operated at a loss since 2021, hitting nearly $570 million in 2025. Presbyterian previously announced a planned merger with Iowa-based UnityPoint Health in March 2023 to reduce administrative costs, but that consolidation fell through later that year.
“While difficult, these actions are necessary to support Presbyterian’s financial strength and our continued ability to serve New Mexico as a local, independent, not-for-profit healthcare organization,” Presbyterian officials said in Thursday’s announcement.
Earlier coverage: Presbyterian Cuts 135 Jobs in Health Plan Shift
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