The New York State Nurses Association (NYSNA) alleged Wednesday, July 1, that Montefiore Health System, a private hospital system operating in The Bronx and Westchester Counties, is planning to lay off real nurses and replace them with artificial intelligence (AI)-powered software. According to the union, the affected nurses are those who “use their decades of bedside experience and clinical judgement to review insurance denials and make sure patients get the care they need covered by insurance.”

Bronx Nurses hosted a town hall this week to raise awareness of what they said is AI making inroads in healthcare and threatening patient care and jobs. They allege the lay off plan will give over private patient records to a Palantir-connected company.

The union went on to say that replacing real nurses with AI is “terrible for workers and the economy in The Bronx.” They said it could also have negative consequences for patients in The Bronx. The virtual town hall was held with nurses “directly impacted” by the alleged proposal in order “to discuss Montefiore’s plan, its negative impact on jobs and patient care in the Bronx, and how healthcare practitioners and communities can fight back against untested AI in their hospitals.”

They said community members and elected officials, including City Council Member Shirley Aldebol (C.D. 13), who represents the East Bronx, joined the town hall. “I am calling on Montefiore to stop the layoffs immediately, stop the 45-day displacement clock, and commit to abide by the nurses’ contract by engaging in meaningful discussion about any plans to implement AI or other technology that could replace real nurses or compromise patient care,” the councilmember said.

Meanwhile, Marilyn Shuler, RN, a utilization review nurse who the union said is slated to be laid off after working at Montefiore for 39 years, said, “What we want from Montefiore is simple: stop the layoffs, keep a licensed nurse on the final review, use AI to support us instead of replacing us, and sit down with the nurses who actually do this work.”

Union officials said Shuler is one of 12 nurses that Montefiore allegedly intends to replace with AI-powered software. They said utilization review nurses read patient charts and make the case for a patient’s insurance company to cover the care a doctor orders. They allege Montefiore is “gambling, without evidence, that AI can do a better job.” They went on to say that nurses have raised concerns about the potential negative impact on patients.

They said that if AI replaces nurses’ clinical judgement, complicated cases may be dropped, and that means a missed diagnosis or a surgery never gets approved.

Union officials said nurses at the town hall also raised concerns about the company Montefiore selected for the proposed work. They said Datavant, a private-equity-backed technology company, has two partnerships with Palantir, the company appointed by U.S. Department of Immigration & Customs Enforcement (ICE), to surveil and deport immigrants.

They said it also has a history of data breaches. Nurses expressed concerns about Montefiore outsourcing access to private medical records that they said could include immigration status, to Datavant.

NYSNA Executive Committee member at Montefiore, Shaiju Kalathil, RN, said: “We are outraged about these layoffs because these dedicated nurses are being replaced by AI. This is a violation of the contract that we recently won by going on strike. It should also concern every practitioner and patient who cares about the future of healthcare and the quality of care they receive.”

NYSNA President Nancy Hagans, RN, BSN, CCRN, said, “Artificial intelligence should never replace real human caring from a nurse. The 45,000 members of NYSNA fully support this fight to protect our patients and practice from AI.”

Assembly Member Amanda N. Septimo (A.D. 84), who largely represents the South Bronx and who recently shared her Lupus diagnosis, said, “Montefiore’s decision to replace experienced nurses with AI-powered technology is deeply concerning for both healthcare workers and the patients they serve.”

She added, “These nurses use years of clinical expertise to help patients overcome insurance denials and access the care they need. Human compassion and medical judgments cannot simply be replaced by software. Technology should support healthcare professionals, not replace them. I stand with the New York State Nurses Association in calling on Montefiore to halt these layoffs, stop the displacement process, and work with frontline nurses to ensure innovation strengthens, not compromises, patient care.”

State Sen. Nathalia Fernandez (A.D. 80), who largely represents the East Bronx, said, “Transparency and real engagement with the workers on the front lines should be the standard for any decision that could impact jobs, clinical judgment, or the quality of patient care. As healthcare technology continues to evolve, we must ensure it is used responsibly and never as a shortcut to undermine workers or weaken patient care.”