Presbyterian Healthcare System has laid off 150 administrative employees and will discontinue most Medicare Advantage plans in 2027 amid signs of broader financial turmoil at one of the state’s largest health systems.
The changes, which President and CEO Rishi Sikka announced Tuesday in an all-staff email, come after Presbyterian reported an annual operating loss of $568.2 million in a December financial disclosure.
The staff cuts and reduction in plan options “do not impact the care we provide in our hospitals and clinics across New Mexico,” Presbyterian Healthcare Services said Wednesday in a statement. “Instead, they reaffirm our long-term focus on investing in expanding access and in our clinical workforce and care delivery sites.”
Presbyterian Healthcare Services is a major player in New Mexico’s healthcare landscape. It runs hospitals in Albuquerque, Santa Fe, Española, Rio Rancho, Clovis, Socorro, Ruidoso and Tucumcari. Presbyterian reported operating more than 1,100 licensed beds in New Mexico in 2025 — equivalent to nearly 30% of the state’s total hospital bed capacity, according to figures from the American Hospital Directory.
Meanwhile, Presbyterian Health Plan — its health insurance arm — serves about 535,000 members across New Mexico, according to Presbyterian’s December financial disclosure. That includes commercial insurance — including employer-sponsored and individual plans — as well as government programs like Medicaid and Medicare.
All told, Presbyterian Healthcare Services, a nonprofit exempt from corporate income taxes, brought in about $6.8 billion in revenue in 2025, according to its financial disclosure statement. Its expenses, however, totaled nearly $7.4 billion.
In his email announcing the changes, Sikka said Presbyterian Healthcare Services eliminated about 150 health plan and administrative positions, while emphasizing that delivery system staff — or direct patient care workers — are “not impacted by this change.”
Presbyterian in the statement insisted hiring and expanding clinical positions remains the health system’s “greatest need.” About 870 clinical positions are open across Presbyterian hospitals and clinics.
Presbyterian’s plan to discontinue most Medicare Advantage plans — or insurance plans from private companies that serve as an alternative to Medicare, often bundling hospital, medical and drug coverage into a single plan — is expected to affect about 30,000 health plan members. Those members “will need to find new coverage next year,” Sikka wrote in the all-staff email.
“For Presbyterian, continuing in this market would limit our ability to invest in the care, workforce and access to serve New Mexicans where they need us most,” the health system said in its statement.
Notably, Presbyterian Health Plan will continue to offer its Medicare Advantage Dual Plus Special Needs Plans, which cover seniors eligible for both Medicare and Medicaid.
The National Association of Benefits and Insurance Professionals New Mexico Chapter issued a statement clarifying current Presbyterian Health Plan coverage remains unchanged through the end of 2026.
“Transitions like this can cause immediate anxiety for families and seniors, but our community of licensed health insurance brokers is fully prepared to handle the migration,” chapter President Agnes Gallegos-Bintz said in a statement.
She continued, “Starting this October, local agents will be working individually with affected consumers to find robust, alternative plan choices that maintain continuity of care and protect their existing doctor relationships.”
