Robert F. Kennedy Jr., secretary of the Department of Health and Human Services (HHS), on March 27 announced major changes at HHS, including the merging of some divisions, in a bid to become more efficient.
“We are going to streamline HHS to make our agency more efficient and more effective,” Kennedy said in a video statement.
Enhancing service quality is the other objective.
Key Changes Under the Plan
Kennedy said mass layoffs would cut the fulltime HHS staff from 82,000 employees by around 25 percent, in addition to division consolidation. Although the change will be difficult, Kennedy stated that the department is “going to do more with less.” Half of the job cuts will come from voluntary buyouts and early retirements, while the remaining 10,000 positions will be eliminated through layoffs. Administrative roles in areas such as human resources, IT, procurement, and finance are expected to be the most affected
Health officials estimate that the restructure, which will reduce 28 divisions to 15, will save $1.8 billion annually.
Among the most significant changes is the creation of a new division called the Administration for a Healthy America (AHA). This entity will merge several agencies, including the Office of the Assistant Secretary for Health (OASH), Health Resources and Services Administration (HRSA), Substance Abuse and Mental Health Services Administration (SAMHSA), and others. The AHA will focus on maternal and child health, mental health, environmental health, and workforce development.
Broader Implications
The restructuring aligns with President Donald Trump’s executive order on government efficiency and workforce optimization. However, some experts question whether consolidating diverse agencies with unique missions will achieve the intended efficiency gains. Genevieve Kanter, a policy professor at the University of California, noted that merging agencies with vastly different objectives might hinder rather than help operational effectiveness.
Despite these challenges, Kennedy remains optimistic about the transformation’s long-term benefits. “This overhaul will be a win-win for taxpayers and for those that HHS serves,” he said. “Our goal is to Make America Healthy Again.”
Administration for Strategic Preparedness and Response, which is in charge of handling national disasters and public health emergencies.
The Office of Strategy, which will be created by the merger of the Office of the Assistant Secretary for Planning and Evaluation and the Agency for Healthcare Research and Quality, will prioritize research “that informs the Secretary’s policies and improves the effectiveness of federal health programs,” according to HHS.
The Administration for Community Living, which now assists the elderly and disabled, will transfer its work to other organizations, such as the Centers for Medicare and Medicaid Services.
“Over time, bureaucracies like HHS become wasteful and inefficient even when most of their staff are dedicated and competent civil servants,” Secretary Kennedy said. “This overhaul will be a win-win for taxpayers and for those that HHS serves. That’s the entire American public, because our goal is to Make America Healthy Again.”
