At the end of March, officials with the US Department of Health and Human Services (HHS) announced a restructuring that they claimed in a prepared statement will “serve multiple goals without impacting critical services.”1
The plan will “save taxpayers $1.8 billion per year through a reduction in workforce of about 10,000 full-time employees.” When combined with HHS’ other efforts, including early retirement and Fork in the Road, the plan results in a total downsizing from 82,000 to 62,000 full-time federal health employees. According to Associated Press reports, the $1.8 billion amounts to about 0.1% of the department’s $1.7-trillion budget.
The restructuring plan will consolidate 28 department divisions into 15 new divisions, centralizing core functions such as Human Resources, Information Technology, Procurement, External Affairs, and Policy. Regional offices will be reduced from 10 to 5.
The overhaul will also “implement the new HHS priority of ending America’s epidemic of chronic illness by focusing on safe, wholesome food, clean water, and the elimination of environmental toxins.”
“We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic,” HHS Secretary Robert F. Kennedy, Jr, said in the statement. “This Department will do more—a lot more—at a lower cost to the taxpayer.”
Under the plan, the Administration for Strategic Preparedness and Response, responsible for national disaster and public health emergency response, will transfer to the Centers for Disease Control and Prevention.
Other changes announced in the statement include the appointment of a new Assistant Secretary for Enforcement to oversee the Departmental Appeals Board, Office of Medicare Hearings and Appeals, and Office for Civil Rights to combat waste, fraud, and abuse in federal health programs; and a merge of the Assistant Secretary for Planning and Evaluation with the Agency for Healthcare Research and Quality to create the Office of Strategy to enhance research that informs the Secretary’s policies and improves the effectiveness of federal health programs.
The announcements prompted at least one pharmacy professional advocacy group to respond. In an emailed statement sent to American Pharmacists Association (APhA) members, Michael D. Hogue, PharmD, FAPhA, FNAP, FFIP, who is Executive Vice President and CEO, wrote: “I understand how deeply these cuts affect not just those receiving termination notices but also their colleagues, friends, and loved ones who stand by them, sharing in their uncertainty and concern. My heart goes out to each of you navigating this difficult moment. To those affected: You are not alone. No matter your membership status, we are here to support you during this transition…APhA’s stance on these layoffs remains firm. Just as we urged the HHS secretary to review and rescind the last round of federal healthcare staff layoffs, we are calling for immediate action by HHS to review all current or planned layoffs to avoid any unintended consequences that would reduce critical access to healthcare services. APhA also calls on HHS to comply with the Office of Management and Budget’s and the U.S. Office of Personnel Management’s exclusion for ‘the Commissioned Corps of the U.S. Public Health Service’ (PHS) from these large-scale reductions in force and offer PHS officers other positions in federal government service. Our Government Affairs team is actively reviewing these latest reductions to assess their full impact.”2
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References
- US Department of Health and Human Services. HHS announces transformation to make America healthy again. March 27, 2025. Accessed April 3, 2025. www.hhs.gov/press-room/hhs-restructuring-doge.html
- American Pharmacists Association. A difficult day for federal health care professionals—We stand with you. March 28, 2025. Accessed April 3, 2025.