Sentara to lay off 220, including 127 in Virginia

Sentara Health will lay off 220 employees — including 127 in Virginia — as part of a restructuring tied to its decision to drop some Medicare Advantage plans.

The Hampton Roads-based health system notified Virginia state government of the layoffs within the commonwealth in an Oct. 3 letter sent in compliance with the Worker Adjustment and Retraining Notification (WARN) Act. The letter says the layoffs will begin on Dec. 5 and be completed by April 10, 2026.

Sentara says that starting in January 2026, its insurance division, Sentara Health Plans, will no longer offer non-Dual Medicare Advantage, Medicare Advantage Prescription Drug HMO or Chronic Condition Special Needs plans in Virginia, North Carolina and Florida. Coverage for these plans through Sentara Medicare will end Dec. 31.

The removal of these plans will impact 28,961 insurance members statewide. Sentara sent a letter this week to those affected, informing them of the change. During the annual enrollment period beginning Oct. 15, members will be required to switch to another insurer.

“These products are no longer financially sustainable in the current environment,” said Sentara spokesperson Dale Gauding in a statement. “Industry-wide headwinds and market dynamics, including reimbursement trends and regulatory changes, are leading many insurers to reassess their participation in Medicare Advantage.”

He said the decision followed an extensive review and that periodic review of programs and services “aligns with our commitment to operational excellence, financial stability and mission-focused work.”

The changes don’t impact Sentara’s dual eligible special-needs plan, employer, individual and family plans and Medicaid lines of business. The change also won’t affect the insurance plans accepted by Sentara Health hospitals and medical professionals.

Sentara Health Plans President Colin Drozdowski, who is also an executive vice president at Sentara Health, said the health system last week notified employees it was reducing its workforce by approximately 220.

“While approximately 400 positions were identified, by not filling 180 open/vacant positions we were able to limit the impact,” he said in a statement. “The majority of the positions are within Sentara Health Plans, with the remaining being corporate shared services positions that primarily support health plan operations.”

Drozdowski said the layoffs align the company’s staffing with Sentara Health Plans’ membership levels and operational needs, as well as the discontinuation of non-dual Medicare Advantage prescription drug plans.

“These decisions are not made lightly, and our focus remains on communicating directly with our colleagues and supporting them through this transition,” he said. “Impacted employees will receive at least 60 days’ notice, and Sentara is committed to supporting them with career transition services, severance benefits and opportunities to apply for other roles within the organization.”

According to Sentara, the position cuts span multiple levels, with approximately one-third impacting those in leadership positions. Roughly two-thirds of the roles are in Virginia, a third are in Florida and the remainder are remote positions across several other states. Still, the positions are less than 0.7% of Sentara’s total workforce of more than 34,000 employees.

Sentara spokesperson Mike Kafka said in an email that the final number of impacted employees is yet to be determined as Sentara works to find impacted team members another role within the health system.

A not-for-profit health system, Sentara operates 11 hospitals in Virginia and one in northeastern North Carolina. The Sentara Health Plans insurance division has more than 1 million members in Virginia and Florida.