Centra Health to lay off about 90 employees, offer 35 of them open jobs

Centra Health plans to lay off about 90 employees, or about 1% of the total workforce, effective this week, according to a Monday announcement by the healthcare system, which serves more than half a million people across Central and Southern Virginia.

Centra said the cuts followed efforts to identify redundancies. The health system is also working to “improve efficiency and align with industry benchmarks, particularly in administrative functions.” Centra Health has about 7,300 employees, according to a spokesperson.

“Restructuring also helps us adapt to the significant pressures facing healthcare providers including reductions in government reimbursements, economic challenges, shifting demographics and evolving technologies,” Centra said in a statement.

The budget reconciliation bill referred to as the One Big Beautiful Bill Act, which President Donald Trump signed into law July 4, 2025, is expected to cut federal Medicaid spending by $911 billion over a decade.

Additionally, last year, Congress failed to extend the Affordable Care Act enhanced premium tax credits, which at least partially contributed to a rise in the costs of health insurance through Virginia’s Insurance Marketplace from 2025 to 2026 and could have in turn contributed to the drop in Virginians insured through the marketplace. More uninsured patients can lead to more uncompensated care for health systems.

Of the affected employees, 35 were given the opportunity to fill other open positions at the health system, according to the statement.

A Centra Health spokesperson stated Tuesday that the health system does not yet have a number of employees who have accepted the positions.

Eligible Centra employees will receive severance and access to continued healthcare coverage through COBRA, the Consolidated Omnibus Budget Reconciliation Act of 1985.

Over the past several months, Centra has not replaced some departing employees and made smaller adjustments in administrative functions.

“Decisions to restructure are never easy, especially when they impact valued colleagues,” Centra said in a statement. “We extend our appreciation for those leaving the organization and their contributions and commitment to improving the health and quality of life for the communities we serve.”

Centra said it continues to hire nurses and healthcare providers.

In 2023, Centra announced a multiyear, $500 million modernization plan, which it described as “the most significant facility improvements and capital investments in its history.” In early May, leaders from Centra and Lifepoint Behavioral Health, an operating division of Tennessee-based Lifepoint Health, held a ribbon cutting for a behavioral health hospital at Simons Run Medical Campus in Lynchburg. The facility, part of the health system’s modernization efforts, is a joint venture between Centra and Lifepoint.

Editor’s note: This story has been updated with information from a Centra Health spokesperson.