HHS announces restructuring plans to consolidate divisions and downsize workforce

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The U.S. Department of Health and Human Services (HHS) announced “dramatic” restructuring plans that would consolidate divisions and downsize its workforce. According to the announcement, the restructuring will save taxpayers $1.8 billion per year by reducing the workforce by 10,000 full-time employees and consolidating the department’s 28 divisions into 15 new divisions. Regional offices will also be reduced from 10 to five. The announcement claims that the restructuring will make HHS more responsive and efficient, improving American’s experience with HHS, while also ensuring Medicare, Medicaid, and other essential services remain intact.

“We aren't just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic,” said HHS Secretary Robert F. Kennedy, Jr., in a press release. “This Department will do more – a lot more – at a lower cost to the taxpayer.”

The department’s restructuring will include the following:

• As part of the restructuring, HHS is creating a new unified entity called the Administration for a Healthy America (AHA) that combines the Office of the Assistant Secretary for Health (OASH), Health Resources and Services Administration (HRSA), Substance Abuse and Mental Health Services Administration (SAMHSA), Agency for Toxic Substances and Disease Registry (ATSDR), and National Institute for Occupational Safety and Health (NIOSH).
• The Administration for Strategic Preparedness and Response (ASPR) will become part of the Centers for Disease Control and Prevention (CDC).
• To “enhance research that informs the Secretary’s policies and improves the effectiveness of federal health programs,” HHS is merging the Assistant Secretary for Planning and Evaluation (ASPE) with the Agency for Healthcare Research and Quality (AHRQ) to create the Office of Strategy.
• A new position called the Assistant Secretary of Enforcement will be created to oversee the Departmental Appeals Board (DAB), Office of Medicare Hearings and Appeals (OMHA), and Office for Civil Rights (OCR) to “combat waste, fraud, and abuse in federal health programs.”
• The Administration for Community Living (ACL) will be reorganized by integrating other HHS agencies the Administration for Children and Families (ACF), ASPE, and the Centers for Medicare and Medicaid Services (CMS). This will not impact Medicare and Medicaid services, according to the announcement.

According to a fact sheet, the U.S. Food and Drug Administration's (FDA) workforce will decrease by 3,500 full-time employees. These cuts will reportedly focus on "streamlining operations and centralizing administrative functions," that will not impact drug, medical device, food reviewers, or inspectors.

Full announcement can be read here.